Germany Tracking Global-Growth Shift Fuels Europe‘s Recovery

The country‘s exporters are increasing shipments to the U.S. and the euro area, tapping into an accelerating recovery in advanced economies just as growth in emerging Asia slows. Paired with robust domestic demand benefiting from record-low unemployment and expansive monetary policy, the German economy stands to drive growth in the 19-nation currency bloc and outperform both France and Italy again.

Germany‘s pillar of strength is a versatile manufacturing sector that guided Europe‘s largest economy through the Great Recession by shifting its attention to faster growing eastern markets. It‘s now looking west and, with the weaker euro a boon to foreign sales, the result forecast is another export record.