Strong Euro Cited as Threat | Business| Economy and finance news from a German perspective | DW | 14.10.2003
  1. Inhalt
  2. Navigation
  3. Weitere Inhalte
  4. Metanavigation
  5. Suche
  6. Choose from 30 Languages


Strong Euro Cited as Threat

German exporters will face "problems" should the euro appreciate further, the VDMA machinery industry association said. A further gain may force it to revise its forecast for two percent growth in the industry next year. "If we get a sustained further appreciation, in the direction of $1.25 or $1.30, then we will see problems for exporters," said Ralph Wiechers, chief economist at VDMA in Frankfurt. "We would then look at our forecast." The euro's appreciation is damping the outlook for German machinery makers, who are counting on a global recovery to help Germany emerge from a recession in the first half. VDMA President Diether Klingelnberg said in August he expects the euro to rise to around $1.25 by the end of the year. European Central Bank council member Ernst Welteke said while the euro's 18 percent appreciation in the past year is still "acceptable," an "abrupt" appreciation would harm the world economy.