The Unassuming Economist

From latest IMF report on Germany:

“Does the large current account surplus in Germany reflect export-driven income gains that are evenly shared among the population? The evidence strongly suggests this is not the case and underscores the important role of German business wealth concentration in this context. As high corporate savings and underlying profits largely reflect capital income accruing to wealthy households and increasingly retained in closely-held firms, the buildup of external imbalance has been accompanied by widening top income inequality, rising private savings and compressed consumption rates.”