BERLIN (Reuters) – Germany’s current account surplus shrank but remained by far the world’s largest last year due to strong exports, according to data from the Ifo institute on Tuesday that is likely to renew criticism of Chancellor Angela Merkel’s fiscal policies.
The International Monetary Fund and the European Commission have urged Germany for years to do more to lift domestic demand as a way to boost imports, stimulate growth elsewhere and reduce global economic imbalances. Since he took office, U.S. President Donald Trump has also criticized Germany’s export strength.
Germany - Account - Surplus - Flow - Goods
Germany’s current account surplus, which measures the flow of goods, services and investments, was the world’s largest for the third year running in 2018 at $294 billion, followed by Japan with $173 billion, the Ifo figures showed. Russia came in third with a surplus of $116 billion.
When measured in relation to economic output, Germany’s current account surplus shrank for the third year in a row, however, falling to 7.4 percent in 2018 from 7.9 percent the previous year, according to the Ifo figures.
Germany - Account - Balance
Since 2011, Germany’s current account balance has been consistently above...
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