Weaker Euro Helps German Exports

The euro’s recent free-fall has helped increase demand for German exports. Order rose 2.8 percent in April, following a 5.1 percent increase in March.

Europe’s sovereign debt crisis has pushed the euro down 20 percent against the dollar since late November, making exports to countries outside the 16-nation currency bloc more competitive. While budget cuts across the region may crimp economic growth, German factories are ramping up production to meet booming foreign orders and a rebound in domestic investment.

“The weaker euro is really kicking in now, and Germany has a dominant position when comes to making the machines that power the global economy,” said Carsten Brzeski, an economist at ING Group in Brussels. “The second quarter will be really strong. European budget tightening will hit German companies later in the year.”

Source: Bloomberg

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