Germany: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany
IMF Staff Country Reports, July 10, 2019
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- Germany: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany
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Bibliographic details
- Published: July 10, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498324625.002
Economic performance and outlook
- Germany’s economic performance has been strong for the past decade, but external factors and structural challenges are now weighing on growth.
- The export-dependent economy has been hit by the recent slowdown in global demand.
- Medium-term growth is expected to fall due to low productivity growth and adverse demographics.
External imbalances and distributional issues
- External imbalances remain large, partly reflecting rising top income inequality.
Macro-financial vulnerabilities and financial sector
- Macro-financial vulnerabilities are rising.
- The financial sector continues to suffer from weak profitability.
Public and private balance sheets, labor market, and inflation
- Fundamentals are sound, with public and private balance sheets remaining healthy.
- The unemployment rate is at record lows.
- Inflation is subdued, but wage growth is continuing to pick up, reflecting the strength of the labor market and increasingly binding capacity constraints.
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