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Do persistent current account imbalances hamper regional and global growth?

By John Beirne, Nuobu Renzhi and Ulrich Volz. Posted April 9, 2021

Current account surpluses have persisted in a number of Asian and European economies throughout the global financial crisis and thereafter. Along with Germany, Japan has a decades-long history of recording current account surpluses. Due to rapid improvements in the competitiveness of its manufacturing sector, Japan has almost continuously recorded trade surpluses since the mid-1960s, and as a result, record current account surpluses (Shirakawa 2011).

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Do persistent current account imbalances hamper regional and global growth?

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