The author analyzed Germany's Balance of Payments during the years of the European financial crisis. Particular focus thereby rests on Germany's traditionally strong current account surplus, but also on its extraordinarily large financial account surplus.
Inhaltsverzeichnis (Table of Contents)
- Germany's widening current account surplus
- Investment abroad: How Germany finances its current account surplus
- Germany as an increased target of foreign direct investment
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The text analyzes the reasons behind Germany's consistently high current account surplus, focusing on the period from 2008-2015. It examines the impact of the 2008 financial crisis on German exports and how the country's economic policies contributed to its quick recovery. The text also explores the factors contributing to Germany's low wage growth and its impact on global competitiveness.
- Germany's current account surplus and its historical development
- The impact of the 2008 financial crisis on the German economy
- The role of domestic economic policies in shaping Germany's economic recovery
- The causes and consequences of low wage growth in Germany
- Germany's role as an investor and target for foreign direct investment
Zusammenfassung der Kapitel (Chapter Summaries)
- Germany's widening current account surplus: The text begins by outlining the emergence of Germany's current account surplus since 2002 and its continued stability even during the 2008 financial crisis. It analyzes the impact of the crisis on German exports, particularly in the automobile industry, and how Germany's economic policies, including subsidies and short-term labor programs, helped mitigate the crisis's effects.
- Low wage growth in Germany: The text explores the reasons for Germany's low wage growth, highlighting factors such as backward-looking wage negotiations, trade unions' focus on job security, and the impact of the Hartz reforms. It discusses the global economic implications of low wages, including accusations of wage dumping practices.
- Investment abroad: How Germany finances its current account surplus: The text examines how Germany utilizes its current account surplus through its financial account, focusing on the growth of foreign direct investment (FDI) since the early 2000s. It analyzes the factors contributing to this growth, including low interest rates and the strength of the German service sector.
- Germany as an increased target of foreign direct investment: The text concludes by exploring how Germany has become an attractive destination for foreign investors, particularly from China, which is increasingly interested in investing in German medium-sized businesses, including "Hidden Champions."
Schlüsselwörter (Keywords)
The text focuses on the German current account surplus, the 2008 financial crisis, export-oriented economy, low wage growth, wage dumping, foreign direct investment (FDI), Hidden Champions, and the role of economic policy in shaping Germany's economic performance.
- Quote paper
- Bachelor of Arts Fabian Hoffmann (Author), 2018, Germany's Balance of Payments from 2007 - 2018, Munich, GRIN Verlag, https://www.grin.com/document/438064
