US Treasury Critical of Germany and China

The US has criticised Germany’s economic policies, saying that its export-led growth model is hurting the eurozone and the wider global economy.

In its biannual report, the US Treasury said that domestic demand growth in Germany had been “anaemic”.   It also reiterated its view that the Chinese yuan, continues to remain “significantly undervalued”.   The report has criticised Chinese policy before, but criticism of German economic policy is rarer.

“Germany’s anaemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro area countries have been under severe pressure to curb demand and compress imports in order to promote adjustment,” the Treasury said.

BBC

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