Capital-goods-oriented German industry
The export and capital-goods-oriented German industry benefits from the fact
that growth cycles around the globe are largely moving in sync. In other words:
All main German export markets are currently doing well. Still, the Brexit impact
(weak sterling exchange rate, slower growth) is already affecting goods exports
to the UK.
In recompense, most commodity-based economies have passed the
trough. China’s minor slowdown does not pose major problems, particularly
since bilateral trade depends not only on the growth cycle, but also on how
quickly Chinese demand for German products can be satisfied by locally
manufactured goods of German companies.
EU Forecast
euf:ba18h:145/nws-01