Germany has additionally confronted worldwide criticism for its commerce surplus, which implies its exports outweigh its imports, as some see it as unfair, imbalanced and a trigger for protectionism elsewhere.
Nonetheless, Germany noticed the primary decline in its commerce surplus since 2009 final yr. Knowledge from the Federal Statistics Workplace confirmed that commerce surplus dropped to $300.9 billion in 2017 from the document excessive seen within the earlier yr at $304.44 billion.
The euro zone’s largest financial system nonetheless had room for enchancment, Flassbeck informed CNBC’s Steve Sedgwick.
“Germany is actually on the market as the primary wrongdoer, so to say, as a result of Germany has the very best surplus, a lot increased than China when it comes to GDP… Germany has to do one thing in opposition to it, that is completely clear,” Flassbeck mentioned.
Final month, Chancellor Angela Merkel mentioned that Germany’s commerce surplus has been narrowing on account of increased home demand. She added that Germany will proceed to work in direction of that development, however there are components, akin to oil costs and forex ranges, that it can not management.