German finance minister at IMF summit: 'Cautious optimism' on economy

German Finance Minister Lars Klingbeil on Thursday shared his "cautious optimism" about the state of the German economy, after several growth forecasts were raised in recent days. 

On the sidelines of the annual meeting of the International Monetary Fund (IMF) in Bangkok, Klingbeil described Germany as an attractive partner for many countries, especially given the confrontational course taken by the United States under President Donald Trump. 

"Where one door closes, new ones open," said Klingbeil, who also serves as vice chancellor. "There are many who want to cooperate more closely with us."

The IMF has raised its growth forecast for Germany for this year from 0.7% to 1.3%, matching the German government's own prediction. 

For next year, the IMF now expects growth of 1.1%, up by 0.1 percentage points.

Klingbeil said this made "cautious optimism" possible and that he also saw exports picking up. "As the government, we must not stop now, but must take further steps when it comes to reforms," he said.

The main driver of growth, in his analysis, is the government's record spending, while he also pointed to additional private investment and cuts in bureaucracy. 

Klingbeil joined a meeting of Group of 20 (G20) finance ministers in Bangkok that was also attended by his Russian counterpart.

"We did not talk," Klingbeil said, warning that Europeans would not pretend Russia can sit at the table as a normal G20 member.

The minister also said he was campaigning for other international partners besides Europe to help finance Ukraine's defence against Russia in the coming years.