The Organization for Economic Co-operation and Development (OECD) said that the rise of the German economy remains strong despite threats from protectionist trade policies from the United States and that the government should use the budget surplus to increase investments to help reduce the current account surplus.
The German economy is strong and is expected to grow by 2.1% this year and next year, OECD said. German exports are also expected to grow by 4.5 percent in 2018 and 2019, despite growing trade barriers and sanctions and tariffs imposed by US President Donald Trump.
The German government must implement structural reforms to promote long-term growth, and such reforms should include public investment and the reduction of incentives for household saving, which could boost household spending, the organization said.
