March 18, 2025 at 08:39PM
On Tuesday the German parliament approved a significant borrowing increase to fund infrastructure and security spending while easing borrowing restrictions.
Germany is expected to spend €900 billion – €1 trillion over the next ten years, over 20% of GDP. Fitch projects the fiscal deficit to grow to 4-4.5% of GDP by 2027, up from 2.6% in 2023, pushing debt levels towards 70% of GDP—the highest among AAA-rated nations.
Fitch says that Germany’s AAA credit rating could face pressure in the longer run if the spending is not not offset by consolidation measures, or doesn’t lead to a lasting improvement in growth,
More here (may be gated).
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Adam had more from Fitch, here:
Fitch: White House has started a global trade war that will reduce US and world growth
This article was written by Eamonn Sheridan at www.forexlive.com.
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