If we look at the EU we can see that in the year 2024 Germany had a trade surplus of about 240 billion €. This means as part of trade deals 240 billion € were given by other countries and have moved over the border into Germany.
However the trade surplus arises from exchanging €, not from creating it. For every 1€ of surplus Germany makes, another country has to make a deficit of 1€.
Therefore my question: Is it mathematically possible for all countries to have a prolonged trade surplus?
If the answer is NO I would like to add a follow-up question: Does one country's aim to increase trade surplus put downward pressure on the wages of other countries.
Can every country have a trade surplus?
byu/aaeberharter inAskEconomics
Posted by aaeberharter