On July 28, GMF hosted a briefing and discussion titled Germany’s new Wirtschaftswunder – How long will it last?, as part of its Strengthening the Transatlantic Economy event series. The event followed the conclusion of the IMF’s annual Article IV consultations with the German government and the renewed interest in the German economic model due to an impressive economic performance coming out of the economic crisis. 

At the briefing, Ashoka Mody, the assistant director of the IMF’s European Department, presented some of the main findings of the IMF’s assessment of the German economic situation. In his presentation, Mr. Mody specifically focused on Germany’s economic outlook, the country’s strengths and weaknesses, and its role as a potential "locomotive" for European and global economic growth.

With many parts of Europe mired in a sovereign debt crisis, Germany seems to be in the midst of a new Wirtschaftswunder. Soaring export numbers, GDP growth rates over 3 percent for 2010, and the lowest unemployment rates in 20 years are cause for great optimism. This success has led to calls on Germany to do more for Europe and the global economy. But there are indications that German growth is starting to slow down and the countries’ financial sector faces continued challenges.

Patrick Welter, the Frankfurter Allgemeine Zeitung’s economic correspondent for North America, served as a respondent and provided his perspective on the situation and outlook for Germany.

To view the IMF’s Article IV Consultation Staff Report on Germany, please click here.