There were other signs of traction. The Eurozone trade surplus with the rest of the world has been setting new records, powered by strong exports, particularly from Germany. This trend kicked off before the euro started tanking a year ago.So on Monday, ECB President Mario Draghi took the opportunity to slap himself and his colleagues on the back for their heroic and bold action, as these things are called, and offered an upbeat assessment of the Eurozone economy. He proclaimed “that growth is gaining momentum.” And he totally nailed it with three out of the four reasons he gave for that growth:
This is due to in particular the fall in oil prices, the gradual firming of external demand, easy financing conditions driven by our accommodative monetary policy, and the depreciation of the euro. Continue reading
German industrial production data has failed to match the expectations of analysts, as the country faces lower growth next year
Germany’s factories posted a meagre rise in output this November, as the slumping euro failed to lift exports.
As the value of the currency has depreciated, Germany’s exports have become relatively cheaper, yet hopes of a corresponding jump in manufacturing have yet to be realised.