Abstract: The global trend of rising corporate saving adds to global imbalances in capital flows as it is particularly strong in advanced economies having large and persistent current account surpluses such as Germany, Japan, and South Korea. This paper contributes to the understanding of rising corporate saving and its nexus with trade imbalances by highlighting the role of investment goods exports for the case of Germany. Based on a two-country open economy model, I show that the well-known decline in relative investment prices amplifies Germany's investment goods exports to emerging market economies and causes rising corporate revenues and saving.