Due to the Covid 19 pandemic many countries’ economies have crashed the biggest being the European economy, this meant that one of Europe’s biggest economies being Germany was over taken by china as Germany’s surplus account took another hit according a survey done by IFO.
The data shows that this happened as there was tectonic shift in the world trade because of the pandemic and this caused a trigger in the economies as there was no time line for the countries to work with. There was a demand and countries were not sure how to make the supply happen, the one thing that world demanded the most was electronics and the supply was met by chine inadvertently this helped china to boost its export.
According to the Munich based institute china’s current surplus is over 310 billion dollars and this includes things such as good, services and investments. Germany is at 261 billion as at 2020 because the demand in the products they had to sell lessened and japan came in third place with 158 Billion.
Although it hasn’t risen in numbers Germany is still on the high side where surplus is concerned because it still at 6.9% as opposed to all the other countries in Europe that cannot go beyond 6%. And china current surplus is 2.1% and Japan at a steady 3.2%.
The united states however is still holding the title of the world’s largest deficit which rose by a third to 635 billion or 3.1% economic output, this only shows that trump failed his push plan of the economy of making America great again. The agenda of America first didn’t help this either as the tariffs were being increased on imported goods the sale of it was less.
Economist Christian Grimme said “In the past year, Germans took a lot less vacation abroad due to the coronavirus,” which means that they have spent significantly less money than countries such as Spain, Italy or Greece.
