German Trade Surplus Hits All Time High

Germany’s trade surplus hit an all time high last year as the country continued to export significantly more than it imported.

According to the figures, German exports climbed 1.2% to 1.2 trillion euros in 2016, while imports rose 0.6% to 954.6bn euros.

This left a surplus of 252.9bn euros, up from 244.3bn euros in 2015.

It comes days after Donald Trump’s top trade advisor accused Germany of exploiting the euro to boost exports.

In an interview with the Financial Times last week, Peter Navarro alleged the euro was a German currency in disguise, and this gave Germany an unfair advantage over the US and other nations.

A low currency makes goods cheaper to sell abroad.

German Chancellor Angela Merkel rejected the claims, however, stressing it always been her country’s policy that the European Central Bank should pursue an independent monetary policy.

The German Finance Minister Wolfgang Schaeuble has said that the euro was in fact too weak for Germany.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza