Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/151106
Authors: 
Schrooten, Mechthild
Teichmann, Isabel
Year of Publication: 
2010
Citation: 
[Journal:] Weekly Report [ISSN:] 1860-3343 [Year:] 2010 [Volume:] 6 [Issue:] 31 [Pages:] 231-236
Abstract: 
German exports suffered a sharp decline during the international economic and financial crisis. But recently a strong turnaround has taken place. Macroeconomic stimulus measures in numerous countries have likely contributed to this export recovery. Germany's manufacturers are at the forefront of the resurgence in exports. The mechanical engineering, chemicals, and automotive industries in particular have realized remarkable export surpluses. Germany's current account surplus has risen considerably over the last ten years. As a result, Germany has cemented its position as a net creditor and investor in the international financial market. The challenge now is to link the strength of Germany's exporting industries to the domestic demand. In doing so, long-term and stable growth for the overall economy could be reached. In short, Germany must overcome the dichotomy between its strong export economy and weak domestic demand. One strategy for strengthening domestic demand could be to relax the policy of wage restraint pursued in the years prior to the crisis.
Subjects: 
Trade
Open Economy Macroeconomics
International Relations
JEL: 
F10
F41
F50
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.