Royston Carr Asset Management - IMF urges German government to take steps to reduce trade surplus.
Online PR News – 12-September-2018 – Taipei City, Taiwan – Royston Carr Asset Management - Last week the International Monetary Fund called on Germany's Chancellor Angela Merkel and her administration to increase their efforts to reduce Germany's excessive trade surplus by upping their level of public investment.
The International Monetary Fund also suggested that Germany consider an overhaul of its pension system in an effort to increase the length of working lives which require workers to save less for retirement and significantly reduce the risks of poverty for senior citizens.
"The IMF and the European Commission have long called for Germany to increase domestic demand by increasing salaries and investment to even out what they deem to be economic imbalances. Since coming to power, US President Donald Trump has also disapproved of Germany's export strength," says Martin Crossley, Head of Corporate Equity at Royston Carr Asset Management
The IMF stated that an increase in manufacturing growth and public investment would boost Germany's economic growth potential in the long term and go a long way to reducing its significant trade surplus.
Analysts at Royston Carr Asset Management say that the new coalition government's deal contains a number of provisions which will address the issues brought to light by the IMF but that the current state of strong economic growth and recovery puts the German government in a favorable position to implement stronger policy reforms.
In a recent speech, French President Emmanuel Macron called on Germany to move away from its reliance on financial conservatism if it hopes to become a leader of European economic renewal.
Earlier this year, IMF chief, Christine Lagarde cautioned that expanding current account surpluses in countries like Germany could be blamed for growing protectionism in other parts of the world.