German trade surplus hits new record high

German trade surplus hits new record high

Germany’s trade surplus widened in September to a record high in a development that underlines criticism that Europe’s largest economy is not importing enough to boost other economies on the continent.

Exports were up 1.7% to €92.8bn in September over August, when adjusted for seasonal and calendar differences. Imports dropped 1.9% to €73.9bn, the Federal Statistical Office reported on Friday.

As a result, the trade surplus in September hit a record high €18.8bn, up from a revised €15.8bn in August.

The United States has criticised Germany for its large trade surplus, saying it was causing problems for its partners in the 17-country eurozone – importing goods and services from countries like Greece and Spain could help shore up those debt-laden economies. It urged Germany to push for more domestic-led growth.

The International Monetary Fund has also joined in the criticism, saying that a smaller surplus by German is the only way to even out the imbalances that plague the eurozone.

Since the creation of the euro in 1999, the currency union has become split between countries that run up surpluses and ones that run chronic deficits – and got into trouble with excess debt. The argument is Germany should buy more from other countries and support growth elsewhere in the eurozone.

The Germans say there’s no purpose to be served in making their economy less competitive. They have pressed other eurozone members to reduce their budget deficits and improve growth prospects through reforms that cut excessive labour costs – as Germany did a decade ago.

More in this Section

Wetherspoons boss Tim Martin hits out at corporate governance rulesWetherspoons boss Tim Martin hits out at corporate governance rules

DCC shares fall 6% on profit declineDCC shares fall 6% on profit decline

Regulator: Banks still failing customersRegulator: Banks still failing customers

Sterling inches lower as Tory vote boost fadesSterling inches lower as Tory vote boost fades


Lifestyle

Aileen Lee meets Christina Kenny - co-founder and design director of Lamb Design - to talk about her work and inspirations.Christina Kenny of Lamb Design: ‘I love bringing the outside in and inside out’

Tyrone designer Sharon Wauchob on her career and the worth of luxury fastion. By Paul McLachen.From Marc Jacobs to her own label, Tyrone designer Sharon Wauchob on her life in fashion

The recent sentencing of two teenage boys for the murder of Ana Kriégel has once again brought the issue of pornography into public discourse. The details of the case, which are finally coming into public knowledge, illuminate some very worrying trends that are pervasive in the modern adolescent world and as parents and indeed as a society we can no longer languish in complacency.Learning Points: Hardcore porn can pollute our children’s minds

If children are confident in interacting with others it takes away so much stress and social anxiety for them. Not too long ago, my daughter Joan and I were out with friends at a restaurant and we wanted extra water and a few other bits and Joan volunteered to go up and ask the waiter for them. My friend was really surprised at this and said that none of her children would willingly do that.Mum’s the word: We should look for chances to strengthen our kids’ social skills

More From The Irish Examiner