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Germany should lower taxes only when ECB reduces its stimulus: Ifo

Reuters  |  BERLIN 

(Reuters) - There is no end in sight to Germany's economic boom and the next should lower taxes gradually starting next year when the European Central is expected to unwind its monetary stimulus, the institute's said on Thursday.

"The is firing on all cylinders, the upswing is entering a new boom phase," told in an interview, adding there were production bottlenecks and an over-utilization of capacities in practically all sectors.

He urged the next to take the strong economic growth into account when considering more fiscal

"If the continues to perform so well, it would be wise to postpone the planned tax cuts and implement them only gradually, ideally not until 2019 when the ECB is likely to turn off its money tap," Wollmershaeuser said.

He confirmed Ifo's growth forecasts for the German to expand by 2.6 percent this year and by 2.1 percent in 2019. "It could even be a bit more, there are more upside than downside risks to this forecast," Wollmershaeuser said.

(Reporting by Michael Nienaber,)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 17:49 IST
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