| Author (Person) | Busse, Matthias, Gros, Daniel |
|---|---|
| Publisher | Centre for European Policy Studies [CEPS] |
| Series Title | CEPS Commentary |
| Series Details | 7 April 2016 |
| Publication Date | 07/04/2016 |
| Content Type | Journal | Series | Blog |
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Abstract: Germany is running a current account surplus of about 8% of GDP, which means that about one-third of all German savings (equal to 24% of GDP) has to be invested abroad every year. It has become by now almost a cliché that these huge excess savings are being wasted abroad. But this is a popular misconception based on the divergence between the available data on the (cumulated) current account balance (cCAB) of Germany and its net international investment position (NIIP). A closer look at the data actually suggests that the NIIP is probably not measured correctly and that the observed returns on German investment abroad have remained above most domestic returns. |
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| Source Link | Link to Main Source http://aei.pitt.edu/74249/ |
| Countries / Regions | Europe, Germany |
