Protectionist Germany has the world's largest trade surplus
Germany’s “fat” current account has been attacked by one of the world’s most influential economic bodies, and described as a trigger for the emergent trade war.So why does Germany and the EU have protectionists policies that drive up the cost of imports from countries like the US? They do not necessarily have to buy more, but they should reduce their own tariffs and subsidies.
The country has the world’s largest current account surplus of $287bn (£214bn), 8pc of its GDP, and half that of China’s, according to the Institute for Economic Research. This is one of the most important measures in trade relations – because it shows that Germany sells far more than it buys from other countries.
The head of the Organisation for Economic Co-operation and Development (OECD) has now weighed into the trade debate telling reporters in Berlin that Germany was partly to blame for the rise in protectionism and that it ought to dramatically up its domestic spending levels.