BERLIN, July 5 (Xinhua) -- The International Monetary Fund (IMF) has lowered its growth forecast for the German economy in 2018 from 2.5 percent to 2.2 percent due to of a possible hard Brexit and rising protectionism, in particular in the United States.
The economic growth rate of Germany is expected to fall from 2.5 percent to 2.2 percent in 2018, and the growth rate in 2019 is expected to be 2.1 percent, German news agency DPA reported Thursday citing an IMF report.
The report also noted that Germany's unemployment would drop slightly to 3.5 percent in 2019, and that the inflation would remain stable at 1.7 percent.
In addition, the report noted that the increases in house prices in Germany's most dynamic cities needs close monitoring.
The IMF also urged the federal government of Chancellor Angela Merkel to do more to boost public investments and support long-term growth, which will reduce its account surplus.
Germany's high trade surplus has long been sharply criticized by U.S. President Donald Trump among others.
