Uncertainty in emerging countries has the potential to further weigh on demand for
euro area exports, with emerging markets worth 25 % of exports.
Not exact matches
But the cruel irony is that any improvement in demand and output conditions in these three countries will partly leak out and benefit the
euro area countries with large trade surpluses because their economies are running on
exports rather than domestic demand.
Repeatedly called out to get off its
export gravy train, Germany is totally ignoring these appeals, whether they are coming from within the
euro area, the International Monetary Fund (IMF) or even from the G - 20.
The
euro area's crisis has sparked «flight to safety» capital flows into Norway's highly - desirable investment assets, pushing the Krone currency to undesirable
export - harming heights and forcing the country's central bank to cut interest rates to stem the inflow.
Looking forward,
euro -
area exports will be helped by stronger economic growth elsewhere in the world, although the renewed appreciation of the
euro in recent months will exert a dampening influence, and a sustainable recovery in the
euro area will require a return to growth in domestic demand.
Growth in the
euro area has remained lacklustre, reflecting subdued domestic conditions and the loss of impetus from net
exports.
Hesitant demand growth in the
euro area explains the modest growth of
export and import volumes in the region, since intra-regional trade accounts for around two - thirds of the
area's total trade.
David Cameron himself also called for EMU to be deepened like this, which is also in the interest of the British economy, given 40 per cent of the UK's
exports target the
euro area.
But forecasts compiled by Bloomberg suggest that both
areas will slow going forward; the
euro area because of the recent strength of its currency, and Japan because of its reliance on
exports to the United States.
More than 80 percent see the
Euro -
area economy strengthening this year, boosted by
export growth tied to a 25 % plunge in the
euro amid fresh quantitative easing by the European Central Bank.