Merkel NIGHTMARE as Germany warned economy ‘BECOMING TOXIC’ with trade war looming
GERMANY’S massive trade surplus has become a “toxic” problem for Chancellor Angel Merkel with the country’s leading economic institute calling for Berlin to change.
By DAVID DAWKINS
Express.co.uk
Thu, Jul 5, 2018
Europe’s leading economy has been criticised for years over what has been seen as an unfair difference between its exports and imports.
However, in the wake of President Trump’s anger over the EU’s trade data, the influential IFO Institute has sent a clear message to Chancellor Merkel that Germany’s trade figures – once viewed as an “asset” – have now become a “liability” with Germany now exposed to protectionist trade measures around the world.
Data published in February by the country’s Federal Statistics Office showed that Germany’s trade surplus in 2017 still stands at a massive $300.9 billion, although the total amount is falling.
However, its trade surplus with the US stands at $64 billion, and the massive difference between what it sell and what it buys continues to test President Donald Trump’s patience.
Center for International Economics told CNBC that Germany risks losing friends and allies over accusations of not playing fair and balancing trade.
He said: “The trade surplus is turning out to be an increasing issue, not just with the US but with other trade partners as well, and also within the European Union.
“The surplus is becoming toxic, and also within Germany many argue now that we need to do something about it with the purpose of lowering it.”
Mr Felbermayr adds that since Donald Trump came to power, selling more than you buy, “turns out to be a liability rather than an asset.”
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