Germany: Thrifty and risk averse - BNPP

Research Team at BNP Paribas, suggests that the high savings by households and enterprises pushed the Germany’s current account surplus to 8.6% of GDP in 2015, a new historical high.

Key Quotes

“The rise in household savings is partly related to population ageing.

Despite substantial profit growth, enterprises remain reluctant to step up investment. Instead they have used a substantial part of their financial resources for strengthening their position in the global value chains.

Without change in policy, Germany’s saving surplus is expected to remain high in the coming years. The lack of investment is harmful for the country’s growth potential.”