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.
In the first half of 2018, German trade remained on a solid growth path. But is stagnation in July a first foreboding of a slowdown caused by mounting concern over US President Donald Trump's trade measures?
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.
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.
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