European Regional Development Fund

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Publish date:
30/08/2013

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BlackDigits

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Which country has the largest account surplus? (Hint, it's not China)

Published 6 years ago by BlackDigits

Surprise, surprise - it is not a country which is rich in resources and neither the die hard export-or-you die Japan! Germany has the largest current account surplus (in absolute terms)!!

This sheds some light on how fragile the Eurozone is. The US blames China often because China runs a current account surplus and maintains an undervalued currency.

Germany is no different. Its real effective exchange rate has depreciated over the years and is running the largest current account surplus in the world. And the other Eurozone countries cannot accuse Germany of manipulating its currency because they are in the same currency union which they agreed (in the Treaty of Maaschtrich) that they will never exit.

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