Germany, the quintessential exporting nation, may have its most glorious trading days behind it, Marketwatch writes. At a time when both China and Japan have flirted with trade deficits in past months, the world’s No 4 economy is still chalking up large surpluses. Last year’s current account surplus of 5% of GDP was one of the biggest in the world outside the oil exporting nations. But multiple economic changes in Asia and Europe indicate that in coming years, the Germans will find worldwide sales of “made in Germany” products a lot tougher.
Slower economic growth in emerging economies, especially those hit by energy hikes or their own export slowdowns, as well as forced austerity in Europe, will likely put German exporters on to the back foot. The changed tempo of the world economy may bring a phase where internal demand rather than exports becomes the main impetus behind the German economy. Such a shift would be highly welcome not only as a way of rebalancing the international economy but also as a means of ensuring the survival of economic and monetary union…..
Get the whole picture at http://www.marketwatch.com/story/germanys-export-feast-is-over-2012-03-19?mod=MWCommentaryandBlogs&mod=marketwatch
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