Germany: Staff Concluding Statement of the 2025 Article IV Mission
you are currently viewing:Germany: Staff Concluding Statement of the 2025 Article IV MissionNovember 26, 2025-Following several years of large economic shocks and negative growth, Germany's landmark reform of its fiscal rule earlier this year has set the stage for economic recovery, driven by a gradual acceleration of domestic investment and consumption. Nonetheless, medium-term prospects remain constrained by rapid population aging and subdued productivity growth. It is thus essential to ensure that fiscal space now available is used judiciously to boost the economy's longer-term productive capacity. Such efforts should be complemented by pro-growth structural reforms, including measures to foster more innovation and digitalization, cut red tape, reduce labor supply constraint-especially among women, older workers, and immigrants-and deepen European economic integration, including by reducing barriers to cross-border trade and investment and better integrating capital and energy markets. Continued prudent financial sector policies are also important to contain risks. Source: imf.org |
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