Germany has had a large surplus for a long time now.
This is due to the huge amount of exporting that Germany does. Some including
President of the United States Donald Trump have taken issue with this and see
Germany as taking advantage and trying to manipulate currency. Germany says
that this is untrue and states the demand for German made products globally as
the main reason for its surplus. Things may be balancing out however. Imports
into Germany are on the rise and faster than expected. They rose 3 percent in
the month of January. This may not be enough to satisfy everyone, but it is a
step towards decreasing the surplus that Germany has had for so long now.
Though this raises some concerns for the US and put Europe’s biggest economy on
a new monitoring list with some other countries due to their large surpluses as
well such as China and Japan.
Sources:
German imports jump, exports also strong. (2017,
March 10). Retrieved April 23, 2017, from http://www.euronews.com/2017/03/10/german-imports-jump-exports-also-strong
I agree with what you have to say about Germany importing more. My question is do you believe that this is due to the rise in population from the refugees that are coming north out of the middle east. even with a surplus, it takes many resources and a diverse array of resources to sustain such a diversifying population. As for the US and other countries who are taking notice of this issue with Germany, they should see it as a competition and try to overcome the hurdles in their own country to maintain their superiority in the export/import process.
ReplyDeleteGermany makes good products that all of us ‘foreigners’ want to buy. Germany’s trade surplus such that their exports are much greater than their imports is due partly to economic trade policies and the under inflated euro. The countries that trade with Germany could try to negotiate a better trade balance however that may cause German manufacturing sector to slow down and lay off workers such that the German government will take the blow, however better intervention from the European Central Bank may help while still keeping a favorable trade balance for Germany.
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