Germany's 2013 growth prospects have been cut in half by the International Monetary Fund, as it warned that the outlook for Europe's strongest economy could worsen if a eurozone recovery fails to materialise.
How precise. From 0.6% to 0.3%. I'm sure it'll happen just that way.
The WSJ reports:
BRUSSELS—The International Monetary Fund has admitted to major missteps over the past three years in its handling of the bailout of Greece, the first spark in a debt crisis that spread across Europe.
In an internal document marked “strictly confidential,” the IMF said it badly underestimated the damage that its prescriptions of austerity would do to Greece’s economy, which has been mired in recession for the last six years.
The IMF conceded that it bent its own rules to make Greece’s burgeoning debt seem sustainable and that, in retrospect, the country failed on three of its four criteria to qualify for aid. …
The IMF report said that it had been too optimistic in 2010 about the Greek government’s prospects for a return to market financing and its political ability to implement the conditions of its rescue program.
Something that can't go on forever, won't