International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the IMF expects a mild recession in Germany this year, but as the impact of energy prices and high inflation wanes, the IMF is quite confident that Germany will emerge from recession. Given the current adverse state of the global economy, Germany needs structural reforms. "If you look at the policy decisions that are being made in Germany, they are all about stimulating structural change. Of course, as in any other country, structural reforms are necessary in a more uncertain world with weaker growth prospects." Germany has recently been labelled the "sik man of Europe"; Germany is also the only major economy to see a recession in 2023. In this regard, Georgieva said that if Germany wants to increase productivity, the car industry should be a top priority of Germany's reform, "for Germany, the need to restructure the car industry for the future economy is very clear." Hans-Werner Sinn, honorary president of Germany's Ifo institute, told a forum in September: "Germany's return to the title of sick man of Europe is linked to the car industry, which is at the heart of German industry and around which so many things revolve." According to the German statistics Office, cars and car parts were Germany's biggest export last year, accounting for 15.6 percent of total exports. However, the German auto industry is currently in a difficult situation, with weak and declining car production and exports. In addition, there will be a recession in Germany this year, Georgieva pointed out that she is quite confident that Germany will emerge from the recession, because the impact of high energy prices and high inflation will fade, "both of these things are one-time events, they will fade." Electricity and gas prices have soared across Europe since the conflict between Russia and Ukraine. But it has since fallen back sharply. Joachim Nagel, president of Germany's Bundesbank, said in April that the energy crisis was now more or less over.
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