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MOODY'S ISSUES ANNUAL REPORT ON GERMANY
Info-Prod Research (Middle East), June, 2006
In its annual report on Germany, Moody'sInvestors Service says the German government's Aaa bond rating and stableoutlook are supported by the high revenues that come from a solideconomic base, allowing the government to easily service its debtobligations. The report also stresses that strong export performance combined withweak domestic activity point to important imbalances in the Germaneconomy which call for reforms to secure growth and income generation inthe future. "The government's EUR25bn package to support GDP growth during thecurrent legislation period can help to support the expected recovery.
Atthe same time, a planned 3 percentage point VAT increase in 2007 putssome uncertainty on the economic growth trajectory," said Moody's VicePresident Alexander Kockerbeck,...
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