This is where I respectfully disagree with Olivier Blanchard, the IMF chief economist, who was quoted as saying: “… the Germans had good reason to reject bearing the brunt of irresponsible policies by other states.
Trade intensity has eased, and we see a slowing of trade growth around the world. A detailed study published earlier this year by the McKinsey Global Institute sheds light on these developments. McKinsey looked at 23 different industries across 43 countries over 22 years. It found that many goods-producing value chains are becoming less trade-intensive as they locate closer to their customers.