Germany has made in 2018 once again, the world’s largest Surplus in the current account. The ifo Institute announced. This means, simply, that Germany has produced much more and more Goods and services than it consumes. Germany is thus for the third Time in a row, ahead of all other countries. With the equivalent of 294 billion dollars (260 billion Euro) is down, the Plus is even bigger than Japan and Russia, the consequences of with an increase of 173 billion or 116 billion dollars on rank two and three.
Among others, U.S. President Donald Trump Germany criticized because of its enormous Surplus. He sees his country in a trade at a disadvantage and therefore considering to high special duties imposed on German cars. Also ifo expert Christian Grimme sees the Excess critical: Germany, build a greater financial exposures to foreign countries as the foreign countries compared to Germany. Because many more Goods and services from Germany, flows more capital to Germany than Vice versa – the bottom line is that the debts of the other countries rise.
The ifo calculations according to the United States with about 455 billion dollars, the world’s highest current account deficit. It had increased in spite of the special duties against Chinese products, even at five billion dollars. “The exports to China decreased significantly, while imports from China increased more strongly,” said Grimme. The US Surplus increased in the sale of services and receipts from foreign assets.
the EU Commission has criticised the Surplus
The German Surplus equivalent to 7.4 percent of annual economic output. The rate for the 2015 reached a record level of 8.9%, for the third year in a row, but more significantly about the brand of six per cent. Values above the EU-Commission considers stability hazard. It refers to the deficits, the face of such a large Surplus, and warns of the high debts of deficit countries. The Federal government expects that the Surplus will persist this year, with a 7.3 per cent above the target.
“Permanently high current account surpluses can be a problem if the receivables can not be redeemed – for example, if the foreign country is able to support the burden of interest”, explains ifo researcher Grimme. The German Surplus is mainly attributable to the trading of goods. Here the exports exceeded those of last year, the imports of the Federal Statistical office according to the well 228 billion euros.
the Left calls for the Federal government
The left party criticized the development. “The Federal government must finally recognize the Problem of permanent exorbitant export surpluses,” said the Chairman of the Bundestag Committee for economic Affairs and energy, Klaus Ernst. “It’s a bird to do the policy of the ostrich as such a development would be positive. We expect the Federal government finally suggestions on how they comply with the stability and growth law and the goal of external equilibrium will be implemented.”
The government, in turn, the report refers to in your current year business to the fact that strength with their policy, investment and domestic demand, “what tends to lead to a reduction in the current account surplus”.
unlike in previous years, China in 2018 and is not to be found among the first three countries with the highest Surpluses. “This is due to a significantly lower goods surplus,” said Grimme. This was, however, less from the trade disputes with the United States, but also from increased imports of machinery.
