Three German Economic Challenges with European Effect

2019-03-15T12:07:06-04:00January 17, 2018|

By Christine Lagarde

January 17, 2018

Berlin, Germany: The bright economic outlook offers a chance for policymakers to address the country’s economic challenges (photo: iStock/Andrey Danilovich).

The economic outlook for Germany is bright. Optimism among investors abounds, and unemployment is at a record low. Policymakers now have a unique opportunity to address the challenges facing the German economy. These are varied but include boosting wages, investing in infrastructure, and reducing the large trade surplus. As the largest economy of the euro area, Germany also has a stake in fostering reforms in the monetary union. Successfully rising to these challenges is critical for Germany and for the euro area as a whole.

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