German Government Must Spend More or Risk Fresh Crisis

(Bloomberg) --

Germany’s economy has hit the skids and risks a protracted downturn that reverses years of progress, according to Bloomberg Economics. By year-end, GDP might be 1% lower than if the slowdown had been avoided, and reversing the damage could cost as much as 110 billion euros ($122 billion). Fiscal policy takes time to work, so the time to act is now, and not wait, as the country’s rules require, until a recession already sets in.

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