The International Monetary Fund (IMF) is again lowering its forecast for economic growth in Germany. According to the forecast, German economic output will only grow by 0.3 percent this year, 0.5 percentage points less than forecast in October.
For the coming year, the fund predicts growth of 1.1 percent (minus 0.3 percentage points). The IMF once again calls Germany the weakest growth among the leading Western G7 industrialized countries this year.
‘Global economy remains stable’
The outlook for the global economy is somewhat better. According to the IMF, it will grow by 3.3 percent this year (plus 0.1 percentage points), and also by 3.3 percent next year.
“The global economy remains stable, although the degree of stability varies widely across countries,” the updated report said. Growth is below average compared to the first 20 years of the century.
Tightening protectionist policies, such as a new wave of tariffs, could exacerbate trade tensions, reduce investment, distort trade flows and disrupt supply chains again, the IMF warns. The future US President Donald Trump, who will be sworn in on Monday, has announced extensive import tariffs – for example against China, Canada and Mexico. He also threatens other countries with punitive measures. The IMF will publish a new detailed outlook in April. (dpa)