German Structural Reforms ‘Are A Must,’ IMF Chief Insists  

• The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, emphasized the need for structural reforms in Germany due to current global economic challenges.
• Germany is perceived as potentially the only major economy contracting in 2023, prompting discussions about it becoming the "sick man of Europe" again.
• The auto industry is a critical area for reform, with Georgieva stressing the need to restructure it for future productivity.
• Germany's auto industry, a significant export sector, is facing challenges due to weakened car production and exports attributed to consumer spending constraints and economic uncertainties.
• The IMF predicts a mild recession in Germany this year but expresses confidence that the country will recover as energy price shocks and inflation subside.
• Globally, the IMF notes a slow and uneven recovery, with the U.S. being the only large economy that has fully recovered from the pandemic's economic impact. Emerging markets and low-income countries are lagging further behind in their recovery. The IMF projects average global growth at 3% over the next five years, down from pre-pandemic levels of around 3.8% over the previous decade.

(Source: CNBC)