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Raymond Van Der Putten, Research Analyst at BNP Paribas, points out that the German current account surplus, which is estimated at at EUR 264 bn (USD 299 bn) in 2018, is the largest in the world.

Key Quotes

“The large surplus causes friction with the trading partners, notably the United States. It is also part of the European Commission’s macroeconomic imbalances procedure.”

“The surplus is partly related to the ageing of the German population. It is also due to the catching up process of the less-advanced EU countries, which is accompanied by a strong demand for capital goods, for a large part imported from Germany. Since the financial crisis, the growing surpluses of the government and non-financial corporations have played an important role.”