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China, Japan, Germany, Saudi Arabia, and Russia Placed on Surplus Watch Five G-20 nations have been placed on the Current Account Surplus Watch for having excessively large current account surpluses and for not taking adequate corrective measures. In his letter to G-20 leaders, President Obama rightly stated that all countries, surplus as well as deficit economies, have a responsibility to help rebalance the global economy. For too long, current account deficit economies have borne the major burden of adjustment to the detriment of world economic growth. In recognition of the negative impact chronic surplus economies have on global demand, the Economic Growth Program of the New America Foundation has launched the Current Account Surplus Watch. The Surplus Watch is the first comprehensive measure of economies with large current account surpluses that also takes into account the corrective measures these economies take to offset their surpluses.Unlike the simple numeric current account targets that U.S. Treasury Secretary Timothy Geithner has proposed, the Surplus Watch takes into consideration the policies countries pursue to increase domestic and international demand through fiscal expansion, exchange rate appreciation, and international development assistance. China, Germany and Japan rank 5th, 8th, and 10th respectively among the Manufacturing Economies on the Surplus Watch. Saudi Arabia and Russia rank 4th and 10th respectively among the Resource Economies on the Surplus Watch. For more information contact Sherle R. Schwenninger or Samuel Sherraden or for media inquiries contact Kate Brown at 202-596-3365 or brown@newamerica.net.Click here to go to the Current Account Surplus Watch.Click here to go to the Economic Growth homepage. Click here subscribe to Economic Growth and Next Social Contract publications. http://currentaccounts. |
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