Economics
IMF Urges German Government Spending to Revive Flagging Economy
- Poul Thomsen, European department head, comments in interview
- Germany has fiscal space and isn’t constrained by high debt
Poul Thomsen
Photographer: Saul Loeb/AFP via Getty Images
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Germany shouldn’t wait for an economic shock before boosting public investment, according to the International Monetary Fund, which said the nation faces structural challenges that are best addressed now.
Europe’s largest economy has a “broad range” of long-term issues including infrastructure, digitization and the participation of women in the workforce that it could spend money on, Poul Thomsen, the head of the IMF’s European department, said in an interview in Brussels. “Germany is not constrained by debt levels from pursuing such good fiscal, structural measures.”