IMF predicts stronger growth in Germany next year, warns government not to be overly frugal

Published January 13, 2015

The International Monetary Fund is sticking by its prediction that Germany will see stronger growth in 2014 if economic trends hold.

The Washington-based IMF says growth will rise to 1.3 percent next year as Germany benefits from low unemployment and a gradual recovery in countries that use the euro.

The fund's mission chief for Germany reiterated the IMF's previous forecast of 0.3 percent growth in GDP for 2013.

Subir Lall said Tuesday that the greatest threats to Germany were a deepening crisis in the eurozone and a global slowdown led by major emerging economies such as China.

Lall also praised the government's solid budget but warned against "overperforming on consolidation."

The German government's last prediction in April had been for 0.5 percent growth this year and 1.6 percent in 2014.

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