Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71145
Authors: 
Bornhorst, Fabian
Mody, Ashoka
Year of Publication: 
2012
Series/Report no.: 
CFS Working Paper 2012/14
Abstract: 
From its early post-war catch-up phase, Germany's formidable export engine has been its consistent driver of growth. But Germany has almost equally consistently run current account surpluses. Exports have powered the dynamic phases and helped emerge from stagnation. Volatile external demand, in turn, has elevated German GDP growth volatility by advanced countries' standards, keeping domestic consumption growth at surprisingly low levels. As a consequence, despite the size of its economy and important labor market reforms, Germany's ability to act as global locomotive has been limited. With increasing competition in its traditional areas of manufacturing, a more domestically-driven growth dynamic, especially in the production and delivery of services, will be good for Germany and for the global economy. Absent such an effort, German growth will remain constrained, and Germany will play only a modest role in spurring growth elsewhere.
Subjects: 
Economic Performance
Economic Reforms
Economic Recovery
Current Account
Productivity
Labor Market
Spillovers
Germany
JEL: 
E20
E65
N14
O52
P52
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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