Germany Faces EU Warning on Current Account Surplus, FTD Says
Germany faces a European Commission warning to shrink its current account surplus, which will widen to the highest of any nation this year in U.S. dollar terms, the Financial Times Deutschland newspaper reported.
The balance of goods and services will grow to 210 billion euros ($258 billion), topping the surpluses of China, Japan and oil-exporting countries, the newspaper said, citing a forecast by the Munich-based Ifo economic institute.
As a percentage of total economic output, Germany’s current account surplus will widen to at least 6 percent of gross domestic product, compared with a share of 2.5 percent for China, the newspaper said.
Current account surpluses of 6 percent or more in European Union states are seen as a threat to economic stability of the area as a whole and Germany’s likely violation of the threshold this year would trigger a reprimand by the commission, the newspaper cited Ifo economist Steffen Elstner as saying.
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