Donald Trump is not alone in criticizing Germany for its trade surplus. The European Commission and IMF do so too, but for other reasons. Fabian Lindner of the IMK Macroeconomic Policy Institute talks about trade imbalances and what they might mean.
Saving is said to be a German virtue, something that can be easily believed if the country's whopping budget surplus is anything to go by. Yet what is good news for Germany may provoke ire further afield.
Donald Trump has been making a show of irritation with Germany's trade surplus with the US. But Ulrich Kater, chief economist of DekaBank, says US policies drive Germany's surplus.
Germany's statistics office has reported a renewed annual rise in the country's exports and imports. Europe's powerhouse managed to slightly narrow its trade surplus which has been in the firing line for many years.
The German finance minister has rejected US charges that Germany's trade surplus is a sign of unfair policies and called on the Trump administration to remain engaged in trade liberalization.
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