As required under Article IV of its Articles of Agreement, the International Monetary Fund (IMF) conducts periodic consultations with its member countries. This IMF Staff Report for the 2000 Article IV consultation with Germany concludes that the near-term outlook for the German economy is more favourable that it has been for many years, reflecting a markedly improved external environment, supportive monetary conditions, moderate wage settlements and a clearer direction in domestic policies. The risks to the near-term outlook - persistently high oil prices and a possible sharp appreciation to the Euro - are unlikely to derail the expansion.