Fitch affirms Germany at AAA, outlook Stable


On Sunday, the US-based rating agency, Fitch Ratings, affirmed Germany’s sovereign credit rating at AAA while maintaining a Stable outlook.

Key Findings:

“Germany's 'AAA' rating reflects its diversified, high value-added economy, strong institutions and track record of sound public finances. Germany's position as the primary benchmark issuer for the eurozone affords it significant financing flexibility.

General government debt is on a firmly downward path, forecast to have fallen just below 60% of GDP by the end of 2019, albeit still higher than the current 'AAA' median of 44%.

The large structural current account surplus supports the country's net external creditor position.

Germany's highly open, export-oriented economy is suffering from weakness in external demand as illustrated by the contraction in manufacturing. The contribution of net exports to GDP growth was -0.4pp in both 2018 and 2019 and is forecast to remain negative in 2020 and 2021.

Despite the economic weakness, the budget surplus remained above 1% of GDP in 2019 following a record surplus of 1.9% of GDP in 2018. The fiscal performance benefited from robust tax revenues, generated by strong domestic demand, and the resilient labor market in particular.

The budget balance has been in surplus since 2014, and compares favorably with the current 'AAA' median of a 0.2% deficit.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD stabilizes amid upbeat IFO data, coronavirus concerns

EUR/USD is trading below 1.0850 as the German IFO Business Climate beat with 96.1. Coronavirus headlines are weighing heavily on the market. The US dollar remains bid despite falling US yields. 

EUR/USD News

GBP/USD dips below 1.29 on USD strength

GBP/USD has dipped below 1.29 as the dollar gains ground amid coronavirus headlines. The EU and the UK prepare for formal post-Brexit due to talks kicking off next week. 

GBP/USD News

Crypto market consolidates prices while crushing traders' emotions

Top 3 prices remain in range and contradict indicators pointing south. Mild "fear" sentiment is inconsistent with prices in the upper range of the upward movement. XRP may be the surprise of the week and bounce upwards for technical reasons.

Read more

Gold hits fresh multi-year tops, eyeing $1700 mark

Gold continues scaling higher amid a fresh wave of the global risk-aversion trade. Heightened fears about the economic impact of the deadly coronavirus rattled investors. Absent relevant economic data is unlikely to hinder the ongoing strong move up.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures