BERLIN Germany should increase investment on education and broadband internet and not just on hard infrastructure like bridges and roads to narrow its current account surplus, International Monetary Fund chief Christine Lagarde said on Monday.
"Excessive surpluses are to be rebalanced and there are multiple ways of doing that. Some of our recommendations to German policy makers is to increase investments in the German economy," Lagarde said.
Lagarde was presenting a joint report on global trade by the IMF, World Bank and the World Trade Organization. She, World Bank President Jim Yong Kim and WTO Director General Director-General Roberto Azevedo will later on Monday meet Chancellor Angela Merkel.
Lagarde said global trade has had some disruptive effects despite being a major source of growth, adding that international commerce must be supported and reforms should be implemented to address some of its negative impacts.
(Reporting by Joseph Nasr)