IMF announces further decline of the German economy

(Patria) - The International Monetary Fund (IMF) predicted a recession for Germany this year as early as this summer. Now it has revised its previous assessment downwards.

According to yesterday's IMF report, Germany's gross domestic product will fall by 0.5 percent this year. The July forecast predicted a recession of 0.3 percentage points.

The IMF estimates that Germany will return to positive figures this year and record GDP growth of 0.9 percent, which is 0.4 percent less than predicted in the summer.

Last year, the German economy grew at a rate of 1.8 percent, reports SEEbiz.

The IMF interprets the gloomy forecast as a weakness in interest rate-sensitive economic sectors, a decline in foreign trade demand, and, finally, a slowdown in industrial production.

The German government also expects a mild recession this year due to inflation and the weakness of the global economy.

According to sources from Berlin, the Government has been forecasting a GDP decline of 0.4 percent since last week.