BERLIN, Jan 16 (Reuters) – Germany’s current account surplus
was the world’s largest in 2017, the Munich-based Ifo economic
institute said on Tuesday, unveiling a record high reading
likely to renew criticism of the economic and fiscal policies in
Europe’s largest economy.
The International Monetary Fund (IMF) and the European
Commission have for years urged Germany to lift domestic demand
and imports in order to reduce global economic imbalances and
fuel global growth, including within the euro zone.
Ifo said the German current account surplus — which
measures the flow of goods, services and investments — was the
world’s largest for the second year running in 2017 at $287
billion, followed by Japan with $203 billion.
U.S. President Donald Trump has criticised Germany for doing
too little to reduce its trade surplus with the United States,
accusing Germany of “very bad” trade policies.
Chancellor Angela Merkel has pushed back, pointing to
private consumption becoming the main driver of growth.
Merkel also pointed out that the German surplus is mainly a
result of the interplay of supply and demand on global markets
and that Berlin has only limited influence on other important
factors such as the euro exchange rate and energy prices.
China slipped to third place with a surplus of $135 billion,
less than half Germany’s.
The German current account surplus fell to 7.8 percent of
total output in 2017 from 8.3 percent in the previous year.
“Traded goods are the main reason for the German surplus,”
said Ifo economist Christian Grimme. “The main driver was high
demand from the European Union and the United States.”
In the first 11 months of last year, Germany’s trade surplus
in goods was 249 billion euros ($304.85 billion) as exports
continued to outstrip imports.
($1 = 0.8168 euros)
(Reporting by Joseph Nasr)