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Economic Buzz: German Economy Expected To Begin Gradual Consumption Led Recovery This Year
28-May-2024 17:47
IMF stated in a latest update that the German economy is expected to begin a gradual consumption-led recovery this year as inflation continues to ease. Following four years of crisis management in response to the pandemic and Russian gas shutoff, economic policymaking is appropriately shifting focus toward medium-term challenges. In this regard, medium-term growth prospects could be bolstered by the following: further increasing public investment, including in the green transition and digitalization; offsetting the aging-related decline in the labor force, including by improving the availability of childcare and easing other obstacles to full-time work; enhancing the financing environment for start-ups and innovation; cutting red tape; and deepening economic integration within Europe. Continued prudent financial sector policies are also critical to contain risks.

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