domingo, 15 de agosto de 2010
TEc - "Turbocharged Germany" - EU's powerhouse lives up itself and roars away...
It is still early days to claim a solid and sustained recovery for the Eurozone but Germany's bounce back is unsurprising to say the least.
An organized society whose companies produce real stuff to high-quality standards was bound to respond well to an improved general context worldwide.The country's export share increasingly shifting Eastwards is only a natural consequence of meeting demand where demand is strongest.
Consumers in emerging countries are buying more because there is more money to spend scattered around.
The upbeat Chinese in particular are unabashedly digging into the deep pockets of their newly hard-won wealth.They have already fully embraced the joys of a full-fledged consumer society.
As Germany pulls away the countries surrounding it are likely to get drawn upwards as well.The latest figures again show there is definitely a two, possibly three-speed Eurozone, EU27, Europe.
The leaner, nimble, cost-effective and efficiently run economies such as Germany's - the biggest to a smaller one like Slovakia's will consistently outperform the others.
France is quickening the pace too but growth drivers underline the philosophical differences that set Germans and the French apart.
The UK is performing a re-balancing act of its own much in line with tradition and the needs of the hour.It is too soon to identify what will lift the British economy in the years ahead.
I sense Italy will somehow find its way. They always do.
The other three countries in Southern Europe face continued hardship and some very tough yet unavoidable policy choices.
For now Greece is putting up an unwavering brave stand, Spain is muddling through and Portugal just about floats above the lot.
Against this backdrop the Euro has firmed up in recent weeks after that continuous slide got suddenly reversed.
Surplus economies and chronically deficit economies in the Eurozone have a long way to go should they ever swing to a midpoint.