The International Monetary Fund (IMF) has cut its forecast for German growth this year, it has been reported.
The IMF has cut the forecast to 1.75 per cent, from its previous estimate of 2.0 per cent, Handelsblattnewspaper reported, citing a copy of the unpublished report.
In the report, the IMF also criticised the governing coalition's controversial fiscal policy plans for next year, which it says "are a significant burden for the economy in a time of cyclical weakness and uncertainty".
It still sees German growth this year at 0.5 per cent, the paper said.
The IMF's new forecasts would be more optimistic than those of Germany's six leading economic institutes, who have pegged growth next year at 1.4 per cent. The government is due to announce its own forecast on Thursday.
AFP