However, given the excellent situation in the labour market and rising incomes, I expect private consumption in Germany to overcome its slump. Initial signs of this are already visible: in the first quarter, retail trade saw a sharp increase in sales.
By the same token, if a country's saving is less than the amount required to finance domestic investment, the country can close the gap by borrowing from abroad. In the United States, national saving is currently quite low and falls considerably short of U.S. capital investment.