One answer is huge net exports of goods and services. Currently, net exports from the giant EU economy (GDP of $17 trillion), taken as a whole, to the rest of the world are near zero. (For the EU as a whole, in 2011 the net import figure was a trivial $33 billion.) In round terms, EU exports to the world are around $2 trillion annually, and imports about the same, so two-way trade is roughly balanced.
To be sure, southern European countries are running huge trade deficits with the northern tier (especially Germany), but as long as all are tied together by the common currency, internal cost and price adjustments (deflation in the south, inflation in the north) will be slow and painful, and will do little to spark growth for Europe as a whole.
To get a significant boost from net exports, Euroland needs two things: a robust world economy so that other countries are willing to buy from Europe more than they sell, and a sharp depreciation of the euro relative to foreign currencies.
Read more: Europe Will Recover As The Euro Falls - Forbes
No comments:
Post a Comment