German Industrial Output and Asian Trade Fears Suggest Slower Global Growth

The sluggishness of the global economy has been highlighted, with German exports rising by less than expected and leaders from across the Asia Pacific region warning that trade is weakening.

Exports from Europe’s largest economy rose 1% in August but came in short of the expected 1.5% increase.

Despite the rise, which followed an unexpected fall in July, the data from the federal statistics office showed German exports continue to be hit by weak demand from the eurozone.

Imports rose by 0.4%, widening Germany’s trade surplus to €15.6bn (£13.2bn) from €15bn in July – higher than analysts had predicted but below a surplus of €18.1bn in the same month last year.

On an annual basis, German imports were 2.2% lower than in August 2012 while exports of goods were 5.4% lower.

Meanwhile, leaders at an Asia Pacific Economic Co-operation (Apec) meeting in Bali warned global growth was too weak and trade was slowing.

“Global growth is too weak, risks remain tilted to the downside, global trade is weakening, and the economic outlook suggests growth is likely to be slower and less balanced than desired,” leaders said in a statement.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza