IMF: Infrastructure fund could help reignite German growth by 2026

Washington, Apr. 25, (dpa/GNA) – The International Monetary Fund (IMF) expects Germany’s recently approved €500 billion ($568 billion) infrastructure fund to have positive effects on the economy starting in 2026.

At that point, the burden of the international trade conflict and global uncertainty could at least partially be offset, said Oya Celasun, deputy head of the IMF’s European Department, during the fund’s meeting in Washington on Friday.

The special fund for infrastructure, plus a separate move to loosen borrowing limits for defence, has the potential to significantly revitalize the economy after years of weak growth, though Celasun does not expect a rapid increase in spending.

The greatest impact is anticipated in 2026 and 2027, she said. The IMF particularly praised the special fund for infrastructure, which is expected to not only provide a short-term growth boost but also have long-term effects.

At the same time, the IMF called for reforms. Most importantly, bureaucracy must be reduced to ensure the special fund can achieve its full impact. Additionally, Germany must make efforts to increase the number of women working full-time.

GNA

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