Current Event 4/21/12

Germany, the EU's biggest and most powerful economy and the fourth-largest economy in the world, has experienced difficulties lately with the international recession and the EU debt crisis. However, recent data shows that the economy is changing--for the better. Although Germany's status as the largest exporter of goods in the world has changed because of the success of the US and China, the growth of Asian economies also benefits Germany. There is a very large market for German-manufactured goods in countries such as China. Anton Börner, the president of the German Foreign Trade Association, thinks that at the current economic rates, Asian and European markets for German goods will be roughly the same by about 2040. The Federal Statistics Office reports that exports are up 8.6%, and worth about 91.3 billion euros. In Europe, German exports have dropped six points, to only 59% percent in EU countries. The figures in Italy and Greece are even lower.
But the German economy will also benefit from services provided, says Börner. Engineering is currently big, with health and care services also projected to grow.
The loss of market for German goods in Europe reflects the current situation of the EU, which is unstable and unwilling to take large economic risks such as investing in a market for German goods. However, the global economic situation virtually nullifies the European economic weakness and disinterest in German goods. Rising standards of living and economic stability in Asian countries like China mean that Germany has a promising economic future if China continues to grow. This is a positive thing for Germany, and means that the powerful nation can continue its projects of growth and development, while helping out the EU in its crisis, without too much fear of losing its market for goods produced in Germany.


No comments:

Post a Comment