Impact of Euro Crisis on German Economy
-DR. ABDUL RUFF
Germans for too long believed that their economy is crisis proof and nothing can ever affect it. Even after the devastations of WW-II, pre-planned by the USA-UK terror twins in order to advance their joint global interests, Germany came back strong with advanced technology and economy, negotiated with USSR and USA for reunification of Germanies into one single Germany in the post-WW-II scenario. But now the disastrous Euro crisis has deflated that belief beyond doubts.
The German economy has been dynamic though it seemed surprisingly resistant to the ill effects of Europe's financial crisis. Latest survey, however, reveals that Germany has also been affected. Germany’s exports fell by 1.7 percent in April in comparison with March. The fall, while expected, was twice what most economists had forecast. It marks the first time in 2012 that German exports have fallen. In total, Germany exported €81.7 billion ($102 billion) worth of goods in April.
The recent data further reveals that Germany can no longer count on the strength of growth in developing countries to offset the euro crisis. Exports to euro-zone countries mired in debt crises fell by 3.6 percent in April. Even though exports to non-European countries actually grew 10.3 percent in the month, demand from China and India has slowed, and German companies are worried. German domestic demand has also reflected that uncertainty. Analysts are expecting exports to remain weak in the coming months.
The positive signal is that Germany's economy, like Turkey, still remains the strongest in Europe. Even with the drop, exports in April were 3.4 percent higher than the same month last year.
Germans, however, are not much disturbed by these findings and hope this purely temporary trend could be easily overturned at the earliest.