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GERMANY: MOODY'S ISSUES ANNUAL REPORT ON GERMANY.
IPR Strategic Business Information Database, June, 2006
In its annual report on Germany, Moody's Investors Service says the German government's Aaa bond rating and stable outlook are supported by the high revenues that come from a solid economic base, allowing the government to easily service its debt obligations. The report also stresses that strong export performance combined with weak domestic activity point to important imbalances in the German economy which call for reforms to secure growth and income generation in the future.
"The government's EUR25bn package to support GDP growth during the current legislation period can help to support the expected recovery. At the same time, a planned 3 percentage point VAT increase in 2007 puts some uncertainty on the economic growth trajectory," said Moody's Vice...
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