IMF invites Germany to make more investments

On Monday, May 15, the International Monetary Fund (IMF) again pointed out the the budget surplus of Germany was too high and invited it to reduce taxes and increase investments in order to stimulate local demand and economies of its trade partners.

Germany is a constant target for criticism from international institutions and its trade partners, which accuse her of not importing and not investing enough for other countries, especially European ones, to benefit from it.

The German budget surplus should be used for initiatives for strengthening the growth potential, such as investments in infrastructure, help to children, integration of refugees and fiscal unburdening in the labor market, the IMF said in its regular report on German economy.

Germany should use its increased tax revenues to invest in infrastructural projects which would stimulate the potential for growth and encourage employers to raise salaries and help lift inflation in the Eurozone, the IMF said.

Germany had a record budget surplus of nearly EUR 24 billion last year, that is, 0.8% of the GDP, whereas most of its European neighbors, including France, are struggling with a deficit.

Međunarodni monetarni fond-MMF Beograd

IMF

surplus of Germany

German investments

German economy

GDP of Germany