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The following article was published in our article directory on November 8, 2010.
Learn more about SpinDistribute Article Distribution System.

German SMEs to Export Into a Powerful Engine

Article Category: Business

Author Name: xia zihui

ECB monetary policy meeting monthly regular meeting. A day earlier, the Fed has just decided to enter the second round of quantitative easing. Economists had forecast the ECB will make a clean break with the Federal Reserve to keep interest rates unchanged 1%.

"The ECB's monetary policy will have important news or changes occur, the press conference on Thursday Q & A session may be dominated by other issues", ING Bank's senior economist Carsten Brzeski, told reporters. One of the other issues he said, is that the German Bundesbank President Axel Weber and ECB President Trichet's contradictions.

ECB elements known to tone and rigorous, but since the European sovereign debt crisis, many public occasions heavyweight Weber questioned the European Central Bank has a policy, the recent focus of Weber against the European Central Bank member governments should continue to acquire bonds.

Behind the differences, in fact, Germany and other euro-zone economic recovery in the lopsided way, the economic imbalances within Europe become more severe. Germany 2.2% economic growth in the second quarter, the largest quarterly increase in 20 years; France, Italy, Spain and Portugal increased slightly, an increase of 0.6%, 0.4%, 0.2% and 0.2%; Greece 7 consecutive quarter recession, in the second quarter were down 1.5%.

Not only within the euro area in the world, Germany is also showing a weak growth in developed countries very different situation.

What is to promote economic prosperity in Germany?

The back of strong exports: Schroeder reform

German Ministry of Economic Affairs has recently once again raised its growth forecasts, projected GDP growth of 3.4% in Germany this year, up 1.8% in 2011. This growth rate far higher than the 16-nation euro area European Commission this year, the expected overall growth of 1.7%.

Creation of the German economic miracle, first of all exports. According to the German Statistical Office, since March 2010, German exports grew an average rate of nearly 20% growth rate in August reached 25.6%. German Exporters Association predicted that the German export industry growth in 2010 or a 10-year high.

Materials provided by the German Ministry of Economic Affairs showed that German exports to exceed the overall rate of the euro area, the structural advantage of the export market advantage.

In particular the German Ministry of Economic Affairs, Germany to China, Russia, Latin America and exports to other Asian emerging countries is significantly higher than the EU average, while these economies in 2010 and 2011 is the world's economic engine.

In addition to geographical advantages, industry advantages also make a strong recovery in exports, Germany. German exports of intermediate products were the four major industries, capital goods, automotive, and machinery products, it is in the national economic stimulus plan needed products.

This is where the focus on the strengths of the German manufacturing sector and emerging markets complementary products, which can minimize the cost advantage of emerging markets by the impact of competition. League of German Industry (BDI) Holger Losch, senior vice president, told reporters that in a third country markets, China and the overlapping areas of German exports is still very limited.

Another advantage is the essence of Germany and others specializing in different products. From cocoa processing machine, jacquard warp knitting machine to the lipstick filling machines and other machinery on the market, the German companies dominate the world. In each segment, a German company alone controls 70% or more of the global market.

SMEs are the backbone of German economy. It is because of their existence, Germany was able to be located in the special purpose products, technology-intensive, expensive low-volume products, according to statistics, there are 1,420 companies in Germany the top two position in the industry, there are about 50% of the enterprises on production of small quantities of customer orders, special-purpose products.

In addition, the cost advantage is better than German exports to other EU countries, an important factor. London Oxford Capital Markets President that former German Chancellor Gerhard Schroeder is to sow the seeds of recovery for this round of figures. Schroeder came to power in 1998, soon after formulation of the reform program, efforts to reform rigid labor market: lower taxes to increase the income of individuals and businesses, stimulate consumption and investment; reform unemployment insurance and relief system, gradually reduce the unemployed and enhance benefits re-employment training; delayed or even freeze the increase in retiree pensions and so on.

It is in these reform measures, driven by Germany since 2000 only increased by 19% in labor costs, labor costs over the same period the rise in Spain, is its three-fold.

But because of the labor market reform measures, so that France and other European countries, Germany and the United States recently been accused of over-reliance on exports, low levels of domestic consumption, the savings rate is too high, leading to imbalances in Europe and the world economy.

About the Author: I am a editor, http://www.frbiz.com provides min max thermometer,,panasonic ip camera,,dvd cd labels,, welcome to visit!

Keywords: min max thermometer,panasonic ip camera,dvd cd labels,

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