Economic growth along with a reduction in the trading surpluses can be obtained by nations. This was told by the International Monetary Fund (IMF), in one of its study that said that unemployment levels can be reduced if a nation cuts on its trading extra.

The report, which was based on the study done on Japan, Germany, Taiwan and Korea, was released on Wednesday. It showed that the above mentioned nations have successfully curbed the large surpluses that they had built in a long period of time.

But these changes may have serious and reverse implications on China. It would be then forced to make shift in its policies, so that it is able to generate domestic demand. India, on the other hand, has a strong internal market and thus would not have much of difficulty.

Talking about the finds, a person related to the report said that although all the countries have separate and unique cases, the final results indicated towards one single result.

The study also talked about the importance of currency exchanges. The countries, like Germany and Korea, which kept their exchanges rates under control and lose, were the ones that were able to increase the demand.