An asymmetric rebalancing ofcurrent account imbalances

In 2018, the current account surplus of the euro area with the rest of the world as a share of GDP is expected to slightly decline to 3.7% of GDP (or 444 billion euros), from 3.8% of GDP in 2017 and following its continuous increase since 2008 when there was a small deficit (see Figure 1.18). This arguably large (for an economy as big as the euro area) current account surplus indicates that the area’s economy as a whole exports more than it imports and would be particularly vulnerable to a decline in global trade, should a trade war escalate.

more information in Benchmarking Working Europe 2019 chapter 1 'Macroeconomic developments in Europe: tackling the growth, inequality and climate change challenges'