IMF lowers growth forecast for Germany
The International Monetary Fund (IMF) has significantly lowered its growth forecast for Germany. US President Donald Trump's aggressive tariff policy is causing uncertainty worldwide and slowing down economic development. The fund expects zero growth for Germany this year, which is 0.3 percentage points less than the previous estimate in January. This puts Germany at the bottom of the G7 industrialized nations and highlights the challenges facing the German economy. The new forecast also reflects the global growth forecast, which has been lowered to 2.8 percent. The IMF warns that the global economy will be put to a "severe test". While slight growth of 0.9% is forecast for the coming year, uncertainty remains due to trade conflicts and tariffs. The question is how Germany will meet these challenges and what measures will be taken to stimulate growth again.
Intel plans major job cuts
The Intel share $INTC (+5,47 %) shares immediately jumped after the announcement of massive job cuts. The new CEO Lip-Bu Tan is planning to cut over 20,000 jobs, which corresponds to around 20 percent of the total workforce of around 109,000. This decision comes at a time when the company is struggling with a drop in sales and a looming loss of up to 945 million dollars in the first quarter. Despite this gloomy outlook, investors reacted positively to the news, with shares rising 5.7 percent. Tan, who only recently took over as CEO, is pursuing a comprehensive restructuring course that includes layoffs, increased investment in artificial intelligence and a restructuring of semiconductor production. The official financial figures will be published tomorrow and analysts expect a 3.4 percent drop in sales. Intel's next steps will be crucial to regain investor confidence and set the course for a sustainable future.
Sources:
https://www.n-tv.de/wirtschaft/IWF-senkt-Wachstumsprognose-fuer-Deutschland-article25718825.html
https://www.n-tv.de/wirtschaft/Intel-plant-wohl-Abbau-von-ueber-20-000-Stellen-article25722146.html