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Michael Pettis: Productive infrastructure investment in Germany does not raise debt burden
Michael Pettis, industry influencer, argues that Germany's hesitation to invest in productive infrastructure should not be seen as a sign of thriftiness nor as an effective way to keep debt levels low.
According to Pettis, productive investments—those that generate more economic value than their cost—can benefit the country without necessarily increasing its debt burden.
Pettis has previously cited the IMF's call for countries to tackle domestic imbalances on their own, even when policy coordination is difficult, in recent commentary. He also reported that China's top 100 developers saw a 23% drop in sales in the first quarter of 2026, with the existing home market showing resilience, according to market data. His recent views on Germany add to a series of posts examining how economies address challenges to growth.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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