The International Monetary Fund (IMF) is expecting Germany's GDP to stagnate this year and to grow 1pc next year, the Finance Ministry said today. "For this year, the IMF expects only a stagnation of the GDP. It attributed this to the weak demand in Europe, the euro appreciation and lack of confidence among consumers and companies," it said. "The IMF expects that the latest interest rate cuts and the announced plans on tax cuts, supported by the gradual recovery of the world economy, will lead to growth of about 1pc next year," it added. The IMF made the conclusions after holding talks with the Government, the Bundesbank, finance market supervisory agencies, industry associations, trade unions and economists.
The talks, held through July 2-14 in Germany, were within the framework of IMF rules on consultations to review the country's economy. "The German Government sees its financial and economic strategies being supported by these IMF statements," the Ministry said. ///www.fxcentre.com