European Economics

European Economics Focus

22 February, 2018

Euro-zone’s trade imbalances are just in remission

The peripheral euro-zone countries have improved their competitiveness and eliminated their big current account deficits. But we think that they will struggle to maintain this improvement. And at the same time, Germany’s large surplus is as much of a problem as ever. So eventually imbalances will yet again threaten the euro-zone. That said, this point is probably still several years away.

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