International Monetary Fund highlights sluggish growth in Germany: Advocates for augmented public investment
The IMF considers Germany's administration to be accountable, considering the deteriorating German economy. According to IMF analyst Oya Celasun in Washington, "Germany should boost its public investments, seeing as it's one of the nations with the least public investment ratios among developed countries." Barriers within bureaucracy should be minimized, and the economic burden should be lessened.
Measures should also be implemented to combat the shrinking population of working-age individuals - this includes motivating more women to participate in full-time employment. This objective can be achieved by expanding childcare and elderly care facilities, Celasun suggested. The IMF recently adjusted its predictions for Germany; it forecasts a 0.8% growth for Germany in the next year, which is 0.5 percentage points less than originally forecasted.
Despite Europe's economy slowly recovering as a whole, it still falls short of its potential. The IMF predicts a 1.2% growth rate for the Eurozone in 2025.
Germany needs to increase its public investment to address its low ratios, as suggested by the IMF. This action could potentially help Germany's economy, given its accountable administration as recognized by the IMF.
Additionally, to combat the shrinking population of working-age individuals in Germany, the IMF suggests expanding childcare and elderly care facilities to motivate more women to participate in full-time employment.
