Economy
Sunday, 05 October 2014
The German economy is weakening. Many economic institutions have already taken back their growth forecasts. Now moving to the International Monetary Fund. The prospects are not rosy, but cause for pessimism, there is not.
The growth lame in Germany. That’s the bad news. The good thing is, the German economy has proven to be more stable than many had feared. Apparently for this year and next, there is no risk of recession. According to information of the “mirror” of the International Monetary Fund (IMF) in its new World Economic Outlook so that the German economy after all, grows in two years by around one and a half percent.
The order of magnitude is consistent with the redeemed growth forecasts of other economic experts. The IMF experts had predicted an increase of 1.9 percent for 2014 a few months ago. The reason for the slowdown point to the greater risks posed by the crisis in the Ukraine and the Middle East.
The new growth forecasts from the IMF associated with the already familiar recommendations, among economists already consensus. The IMF also called on the Federal Government to do more for private and public investment. Short term and medium term could the country benefit from such measures, it is called
DIW. No cause for clear
into the picture fits the latest assessment by the German Institute for Economic Research (DIW). After the economic downturn in the second quarter, the German economy has thus regained traction. Reason to relax, why not see DIW CEO Marcel Fratzscher however.
“The German economy is doing a bit better,” said Fratzscher Berlin “Tagesspiegel am Sonntag”. The growth in Germany should stabilize at least back to the very weak second quarter. Specifically, the DIW boss expects a growth rate of about one per cent this year.
At the same designated Fratzscher but the “risks for the German economy” as “enormous”. As the IMF points DIW to the current crises. “The geopolitical problems in the Ukraine and the Middle East have an impact on investment and growth in Germany.”
Many economists say an economic turning point for Germany ahead. Against the IMF, the Organisation for Economic Cooperation and Development (OECD) already had recently withdrawn its forecasts for Germany from 1.9 to 1.5 percent for the current year and from 2.1 to 1.5 percent for 2015.
More on the topicEven the Federation of German Industries (BDI) expects for 2014 only with growth in the gross domestic product of 1.5 percent. So far, the researchers also held 2.0 percent possible. When Industrietag BDI CEO Ulrich Grillo said therefore clear text. He made the policy of the Federal Government for the weakness of the German economy responsible. Germany had especially again more investieren.
Berlin rowing cautiously back
The federal government itself had issued a growth target of 1.8 percent for 2014. Especially given the Ukraine crisis and the EU sanctions against Russia Finance Minister Wolfgang Schäuble (CDU) had but recently admitted that this goal might not be fully achieved.
Source: n-tv.de
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