DHAKA: The US has criticised Germany’s economic policies, saying that its export-led growth model is hurting the eurozone and the wider global economy.

In its bi-annual report, the US Treasury said that domestic demand growth in Germany had been ‘anaemic’.

It also reiterated its view that the Chinese yuan continued to remain ‘significantly undervalued’.

The report has criticised Chinese policy before, but criticism of German economic policy is rarer, says the BBC.

‘Germany’s anaemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro-area countries have been under severe pressure to curb demand and compress imports in order to promote adjustment,’ the Treasury said.

‘The net result has been a deflationary bias for the euro area as well as for the world economy.’

BDST: 2017 HRS, OCT 31, 2013
RoR/RIS