IMF Staff Country Reports

Germany: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany

July 18, 2024

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

International Monetary Fund. European Dept. "Germany: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany", IMF Staff Country Reports 2024, 229 (2024), accessed December 3, 2024, https://0-doi-org.library.svsu.edu/10.5089/9798400283260.002

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

The 2024 Article IV Consultation highlights that the German economy has begun to recover from the energy-price shock. Gradual economic recovery is expected to continue this year. With wage growth now exceeding inflation, private consumption is expected to drive recovery during 2024. High interest rates have boosted bank profitability, but part of this increase is likely temporary. High interest rates have exposed vulnerabilities in banks’ financing of commercial real estate activity. Risks to growth are broadly balanced, with both positive and negative surprises to consumer and investor sentiment possible. Inflation is expected to slowly fall to around 2 percent as lower wholesale energy prices continue to pass through supply chains and to end-users. Fiscal policy is tight, putting the debt-to-gross domestic product ratio on a downward path, although public investment is also relatively low. In order to stabilize labor supply, the authorities should make it easier for women to work full time. This means expanding access to reliable child- and eldercare services and exploring ways to reduce the effective marginal tax rate on second earners in married couples.

Subject: Commercial banks, Expenditure, Financial institutions, Inflation, Labor, Labor markets, Prices, Public investment spending

Keywords: Article IV consultation discussion, Commercial banks, Currency of Germany, Energy-price shock, Global, Inflation, Labor markets, Public investment spending, State's ability, Supervisory authority

Publication Details

You May Also Be Interested In...

Tajikistan: Public Investment Management Assessment with the Climate Module

November 29, 2024

Tonga: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga

November 25, 2024

2024 Review Of The Fund’s Transparency Policy And Open Archives Policy

November 25, 2024

The Role of Corporate Cash Holdings in the Transmission of Monetary Policy Tightening

November 22, 2024