Germany’s Choice

Suddent Debt:

Germany is the world’s #2 exporter, very close behind China. In 2010 it exported a total of 960 billion euro, amounting to 42% of its GDP. Its trade surplus came to 153 billion euro, almost 7% of GDP. Impressive stuff, no doubt, and an achievement that Germans are justly proud of.

But, not all surpluses are created equal… 35 billion of that surplus, a whopping 23%, was accounted by just four countries: Italy, Spain, Greece and Portugal. Yes, to a very large extent the PIGSs’ munching at the trough was what kept Germans working in their factories. And if you just add France, another country that is currently screeching towards the borderline of fiscal probity – at least according to financial markets – the numbers get even more interesting. Germany’s PIGS+F trade surplus jumps to 64 billion, a full 42% of Germany’s entire trade surplus. In GDP terms (trade surplus is GDP-additive), PIGS+F surplus accounts for nearly 3% of Germany’s economy.