Fitch affirms Germany's 'AAA' rating with stable outlook - Breaking The News

Fitch affirms Germany's 'AAA' rating with stable outlook

15 March

1 min read

EPA-EFE/JUSTIN LANE

Fitch Ratings announced on Friday that it had maintained Germany's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AAA,' underscoring a stable outlook for the country's economic future.

However, according to the release, Germany's economy faces challenges, including a weak post-pandemic recovery and structural issues such as an aging population that pressures public finances and labor markets. Fitch anticipates a modest growth of 0.1% in 2024, with expectations of a gradual acceleration to 1.4% by 2025, despite the adverse impacts of recent energy shocks on the country's economic potential.

Despite these challenges, Germany's debt levels are projected to continue declining, albeit at a slower rate. The debt-to-GDP ratio is forecasted to decrease to 63.3% by 2025. This trend, combined with a resilient banking sector and strong governance indicators, supports the 'AAA' rating and stable outlook.

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