Economics
IMF Urges Germany to Keep Economy on Pandemic Support
- IMF says governments should consider additional aid for firms
- DIW’s Fratzscher warns of underestimating second virus wave
The German economy has navigated the crisis better than its major European peers, helped by generous government support and a strong manufacturing sector.
Photographer: Andreas Gebert/BloombergThis article is for subscribers only.
The German government shouldn’t be afraid to bolster fiscal stimulus if the pandemic drags out the economic recovery, according to the International Monetary Fund.
The Washington-based lender urged Chancellor Angela Merkel’s administration to consider additional aid for illiquid or insolvent-yet-viable businesses and maintain support for the country’s labor market to avoid more permanent scars. Staff envisage a “choppy” and unevenly distributed rebound that will only firm once vaccines have been widely distributed.