The Business Times
SUBSCRIBERS

German economic growth depends on a weak euro

Published Wed, Nov 25, 2015 · 09:50 PM

GERMAN exporters, under pressure as a result of a slowdown in several key trading partners, must be hoping the renminbi's expected incorporation into the IMF's special drawing rights leads to a firmer Chinese currency. The rise in the renminbi against the euro - up 76 per cent over the past seven years - has greatly helped German companies' Asian competitiveness, a significant reason for Germany's hitherto booming China-bound exports.

This in turn has helped power the country's overall positive economic performance since the financial crisis. A reversal in the wake of China's economic slowdown would damage Europe's largest economy. Conversely, a further shift towards monetary easing and an extension of quantitative easing by the European Central Bank, widely expected for Dec 3, would send the …

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Columns

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here