Economy: IMF significantly raises forecast for German economy
At 1.3 percent, the growth now forecast is almost twice as high as assumed in July. The IMF estimate matches the federal government's forecast.
The International Monetary Fund (IMF) has significantly revised its forecast for Germany's economy this year, projecting a notably stronger growth rate. The organization now anticipates economic growth of 1.3 percent for 2023, nearly double the initial estimate of 0.7 percent from July, according to the IMF's announcement. For the upcoming year, economists are expecting a 1.1 percent increase, a 0.1 percentage point rise from previous projections.
This positioning aligns with the German government's stance, which also published similar forecasts last week. The optimism stems from the surprisingly resilient nature of the German economy. The IMF's economists, meanwhile, have adopted a marginally more optimistic outlook for the global economy, projecting a 3.1 percent growth for 2026, up from the previous estimate of 3.0 percent.
For the coming year, they have maintained their forecast of 3.4 percent growth. This resilience in the global economy has been attributed to greater resistance against energy shocks, higher oil production outside the Persian Gulf, tapping into strategic reserves, and a decline in Chinese demand, which have helped cushion the price shock.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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