German advisers reject criticism of high surplus - Business News | The Star Online


German advisers reject criticism of high surplus

BERLIN: The German government’s panel of economic advisers yesterday rejected international criticism of the country’s large current account surplus and called US President Donald Trump’s protectionist stance a threat to the global economy.

“The German current account surplus is high, but this does not signal a macroeconomic imbalance,” Christoph Schmidt, head of the panel of ‘wise men’ said, adding that demands such as increasing public investment were misleading.

The government should rather make Germany a more attractive investment location for the private sector which would help to reduce the current account surplus, Schmidt said.

The panel revised up its growth forecast for this year to 1.4%. Adjusted for the fewer number of workdays this year, they expect Europe’s biggest economy to grow by 1.7%.

For 2018, the panel predicts a growth rate of 1.6%. – Reuters