BERLIN May 19 The International Monetary Fund
(IMF) urged Germany on Monday to invest more in infrastructure
to boost its long-term growth and support the euro zone currency
In a statement detailing policy recommendations, the IMF
said Germany could invest up to 0.5 percent of gross domestic
product a year more over four years without violating fiscal
rules and with only a small effect on the debt-to-GDP ratio.
"Such a programme would yield a persistent increase in GDP
by crowding in private investment and would also stimulate
growth in the rest of the euro area," the IMF said in the
The Fund also expected Germany's recovery to gather further
momentum and said it would likely raise its growth forecast for
Germany soon. The Fund said in April it expected German growth
this year of 1.7 percent and of 1.6 percent next year.
Germany's government forecasts growth this year of 1.8
percent, followed by 2.0 percent in 2015.
(Reporting by Annika Breidthardt)