Strong euro not hurting Germany

21st June 2004, Comments 0 comments

21 June 2004 , FRANKFURT - The euro's long-standing strength against the US dollar has not proven to be a burden on the competitiveness of German firms, which continue to perform well on export markets, the central bank said Monday in its monthly report for June. The Bundesbank said German companies' prices remained competitive despite the fact that the euro had gained almost 20 percent in value in the period between the first quarters of 2002 and 2004 against the 12 most important trade partners outside t

21 June 2004

FRANKFURT - The euro's long-standing strength against the US dollar has not proven to be a burden on the competitiveness of German firms, which continue to perform well on export markets, the central bank said Monday in its monthly report for June.

The Bundesbank said German companies' prices remained competitive despite the fact that the euro had gained almost 20 percent in value in the period between the first quarters of 2002 and 2004 against the 12 most important trade partners outside the eurozone.

"The price competitiveness of German industry in 2003 and in the first quarter of 2004 can by and large be categorized as neutral, or even better," the Bundesbank said.

It noted that other factors beside currency rates play into the equation on competitiveness. Among others, price developments in the trade partner countries also have an influence on how competitive a country's products are.

The Bundesbank said that within the eurozone, where the same currency is used, Germany's competitive position had been steadily improving thanks to lower domestic inflation than other countries in the euro region.

 DPA

Subject: German news 

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