This is puzzling - how can Europe’s biggest economy avoid recession while the rest fall into it?

Euro Exchange Rate Outlook: The German Econ Minister, Mr Glos, praised the newly weaker euro exchange rate as a good thing for exports. Most commentary continues to deny that Germany will fall into recession, even if the eurozone does, as is highly likely, having already marked one quarter of negative growth. This is puzzling - how can Europe’s biggest economy (40%) avoid recession while the rest fall into it?

Eurostat reported that construction activity inched up in August by 0.1%, the same July, for a quarterly drop of 3.5% q/q. Year-over-year, Aug was sown 2.5%, which is better than 03.3% in July.

In trade, the eurozone Aug deficit was €6.1 billion after €6.7 billion (revised) in July, with imports down 1% and exports down less, 0.6%. We remain a little confused about why Europe has a trade deficit at all.

Exchange rate to buy euros today against the Pounds is currently 1.2852

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Barbara Rockefeller
Forex Trading Reports

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