Germany Fires Back at U.S. Critique of Its Trade Surplus
A report from Germany's Bundesbank on Monday:
- The Bundesbank stressed Germany's foreign surplus is already shrinking
- From 8.75% of gross domestic product in the first quarter of last year to 7.5% in the fourth quarter
- "There is some reason to believe that Germany's current-account surplus might have passed its zenith and will shrink markedly in the current year"
- Says surpluses were "the result of numerous, mainly private economic decisions both domestically and overseas"
- They "can hardly be steered sensibly using political tools"
- The Bundesbank did call for research into policy changes that could encourage more private investment in Germany, which would help reduce the surpluses
It also covers a similar report from Germany's Council of Economic Experts, a group of five so-called Wise Men
(5? ... inflation, huh?)
Mike had the headlines from the wise men earlier: Germany's "wise men" raise GDP and inflation growth forecasts