As an informed exporter, it is important to know the major economic indicators of the countries where you are exporting. This is important to foresee if there are any possible chances of payment defaults. If there is, changes can be made in the payment terms. Hence, in order to aid this decision making process, we present the findings provided by the Euler Hermes in weekly frequency. Major indicators like GDP, sectoral development changes, major economic policies decision, sentiments after any new political appointment, bank rate changes etc. help in painting the economic condition of the country for the whole week.

The German economy is the perfect thermometer to check the health of the global economy. The country has an open economic structure, and as exporter they’re widely represented in a number of economic sectors. As a result, global developments can be observed earlier in Germany than anywhere else.

The severely weakening German economy is an indicator for global developments. The decline of the car industry has a lot of influence on the German economy, Professionals have noticed  that the entire German industrial production continues to decline after two steady months and  infects the entire Eurozone, where the processing industry performs plain bad everywhere.

No sign of recovery

The door to a global recession is wide open. In the second quarter, the decline in global trade continued as well and no sign of recovery were seen. German export expectations have never been as low in seven years as they are now. The level of new orders in the German production sector is at -8.6% now compared to a year ago, and that’s its lowest point in ten years. The industrial production decreased by -5.2% in one year.

Furthermore, factors like  trade war now appears to be turning into a currency war. US thinks the Euro is too strong compared to the Dollar and  wants to compensate for that with additional import levies on European products. Such actions will definitely impact economy of  Germany.

Source : Euler Hermes
www.eulerhermes.nl