World Economy

Fitch Maintains Germany Ratings

Fitch Maintains Germany RatingsFitch Maintains Germany Ratings

Fitch has maintained the sovereign ratings of Germany with ‘stable’ outlook. The rating agency said the ‘AAA’ rating reflects Germany’s diversified, high value-added economy, strong institutions and history of sound public debt management, RTTNews reported. A large structural current account surplus, above 7% of GDP since 2014, supports the country’s net external creditor position, the agency said. Fitch noted that government debt, at 68% of GDP in 2016, was higher than the ‘AAA’ median of 41% but was on a firmly downward path. Fitch forecasts general government surpluses of 0.6% of GDP in 2017 and 0.4% in 2018 and 2019, within Germany’s Stability Program targets and only slightly lower than last year’s surplus of 0.8%. At the same time, general government debt was forecast to fall to 62.5% in 2018. The agency expects GDP growth this year to match the 2016 rate of 1.9%, and moderate to 1.7% in 2018 and 1.4% in 2019.

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