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2018-07-26

IMF: Higher-than-desirable current account balances prevail in countries such as Germany and Sweden — as well as in China

Higher-than-desirable current account balances prevail in northern Europe—in countries such as Germany, the Netherlands, and Sweden—as well as in parts of Asia—in economies like China, Korea, and Singapore.

While the current configuration of global excess imbalances does not pose an imminent danger, we project that, under planned policies, these imbalances will grow over the medium term, eventually posing a risk to global stability.

Maurice Obstfeld IMF 24 July 2018

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