Status: 07/20/2022 5:04 p.m.
The German economy is likely to grow slower than expected due to the energy crisis. The International Monetary Fund only expects an increase of 1.2%. And the trend should continue.
At the start of the year, the economy in Germany was still doing well, underlines the International Monetary Fund (IMF). But the consequences of the Russian invasion of Ukraine would have fundamentally changed the situation. The IMF significantly lowers its growth forecast for Germany.
This year and the next will be a challenge for the German economy, said Oya Celasun, IMF expert for Germany, in Washington. She and her team expect growth of only 1.2% for this year. In May, the IMF was still counting on growth of 2% for the Federal Republic.
Biggest Problem: Unclear Gas Deliveries
According to the International Monetary Fund, the growth rate is expected to decline further next year, to 0.8%. In question, the consequences of the war in Ukraine, especially the uncertainties about the supply of energy and raw materials which have become more expensive. The biggest threat to the German economy is that it is unclear whether Russian leaders will continue to supply gas to Germany, said IMF analyst Oya Celasun.
If no more Russian gas is supplied to Germany, this will significantly harm the German economy – and inflation will then continue to rise.
Suspend the debt brake?
IMF experts expect more “fiscal policy flexibility” from the federal government to help the economy. Federal Finance Minister Christian Lindner will not be happy to hear it, but the International Monetary Fund also expects that the federal government will have to suspend the debt brake again in order to deal with the consequences of the crisis. impending economy.
The IMF welcomes the federal government’s efforts to increase the expansion of renewable energy. We need even more speed to invest in the direction of a green economy. This will help the economy.
IMF significantly downgrades Germany’s growth outlook
Steffen Root, ARD Washington, July 20, 2022 4:29 p.m.