Global Times recently reported, based on newly released IMF numbers, that Germany replaced China to become the country with the largest trade surplus. This shows that Germany has built its success on an extremely high export level rather than on imports. It seems that Germany has not encouraged its domestic consumer spending, which could otherwise help the EU’s weak growth. Instead, Germany is becoming a drag on the EU’s overall economy. China has held the top surplus title for many years. However the Chinese currency, the RMB, has appreciated by 30 percent since 2006. In the upcoming IMF/World Bank Annual Meetings in Washington, Germany is expected to face pressure from the international community when it is asked to take action to stimulate its domestic economy to help the EU recover.
Source: Global Times, October 3, 2014