The Economist notes “supercharged Germany” selling to increasingly rich in Brazil, India, China.
Contrast America’s woe with Europe’s renewed hope. Figures published after The Economist went to press were expected to show that the euro area’s economy grew faster than America’s in the second quarter, thanks largely to supercharged Germany. Booming sales to fast-growing emerging markets—notably Brazil, China and India—have brought German industry its strongest quarter in decades. The newly affluent in those countries are rushing to buy Audis and Mercedes, as well as luxury goods from other European countries. German firms that had mothballed factories when global demand for durable goods plummeted have returned to capacity far sooner than they had dared hope. Germany’s unemployment rate, 7.6%, is a bit lower than at the start of the financial crisis.