Germany: Savings surplus harms growth potential – BNP Paribas

Research Team at BNP Paribas, suggests that Germany’s high savings by households and the non-financial business sector pushed the current account surplus to 8.6% of GDP in 2015, a new historical high.

Key Quotes

“This is partly related to population ageing and the reluctance of enterprises to step up investment.

Without change in policy, Germany’s saving surplus is expected to remain high in the coming years. The lack of investment is harmful for the country’s growth potential.”