According to the International Monetary Fund (IMF), Germany’s cyclical upswing is expected to continue in the near-term, while the country’s fiscal position continues to strengthen with debt fallen to 68.3% of GDP in 2016.
• A sustained rise in wage and price inflation is required to help lift inflation in the Euro-zone
• Recommends Germany makes pension reforms to make it more attractive to work longer
• Current fiscal policy should aid growth potential by encouraging investment, promoting labour supply, and boosting productivity
• A re-examination of revenue projection models should be undertaken to improve fiscal planning
• German mortgage market warrants close monitoring