GDP growth in Germany due to sales of luxury goods in Brazil, India, China

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.

Published by Janar Wasito

Janar Wasito is the manager of Magis Capital in San Diego, CA. He is a graduate of Harvard and Stanford Law School, and a former Marine Officer.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s