German Accounts

[dealmaker]

German Accounts

Although it shrank for the third year in a row, Germany had the world's biggest current account surplus (at 7.4%) last year, thanks to strong exports. The new figures could add to criticism of Chancellor Angela Merkel's fiscal policies. The European Commission has been saying for half a decade now that Germany needs to use its budget surplus for more public investment and to stimulate wage growth. Reuters

 

[zdreg]

Trump would like to eat into their surplus by putting tariffs on German cars.

 

[dealmaker]

German Economy

Germany avoided a recession in the fourth quarter of last year thanks to higher state spending. Exports and imports each rose by 0.7%, resulting in flat net trade, and private consumption barely grew. Economists see stricter emissions rules as having dampened exports, due to their impact on Germany's crucial car sales. Reuters