Rebalancing, euro-style

Following on from my blog on Portugal yesterday, this chart above (from Citi) underlines the fact that while some the peripheral countries in the eurozone are reducing the scale of their current account deficits, Germany is actually increasing its surplus. In other words, making it even harder for peripheral Europe to rebalance by crowding out exports. Though Citi’s graph of unit labour costs seems to show German ULC’s rising a touch more than the OECD measure I included in my blog.