- Sigmar Gabriel, German Economy Minister
Germany's economy, the Euro zone's powerhouse, could expand more in 2015 that the 1.6% forecast in April if lower energy prices and the European Central Bank's quantitative easing programme provide a bigger support than estimated, the International Monetary Fund acknowledged. Private consumption will be the main growth catalyst for the German economy in 2015 as workers benefit from robust wage gains, while net exports will also provide support, according to the IMF. Last month the German government upgraded its growth forecasts for 2015 and 2016 to 1.8% as both sentiment indicators and fundamentals pointed to an improving trend, buoyed by the weaker Euro, which support exports, as well as low energy prices, which increase German consumers' purchasing power.
Meanwhile, Greece is under increasing pressure to strike a deal with lenders to prevent financial collapse. Yet, Greek Finance Minister Yanis Varoufakis acknowledged that an agreement to ease Greece's cash crunch was unlikely at a meeting of Eurogroup in Brussels despite progress in negotiations on some issues. Today Greece must pay the International Monetary Fund, one of its main creditors alongside European lenders, 744.9 million euros. The Greek government reassured that it would make repayment, even though it barely stays afloat.
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