By Claire West
Commenting on today’s GDP figures for Germany and other eurozone economies, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“News that German GDP surged by 2.2% in the second quarter of 2010 — double Britain’s own strong performance — shows the importance of exports as a component of a sustainable recovery. Germany’s business culture has traditionally relied on the excellence of its manufacturing exports, and the country has been remarkably successful in diversifying its overseas sales towards the dynamic economies of Asia. While there are elements of the German model that are problematic, UK ministers and businesses can learn lessons from Germany’s export success.
“From a wider global perspective, news from the eurozone is mixed. The fact that countries with large surpluses, such as Germany, are still relying more on exports than on domestic demand will make it more difficult for deficit countries to adjust. The widening gap between a strong German performance and the persistent weaknesses of other eurozone economies such as Greece, Portugal and Spain, will intensify the problems facing the region. This may have negative effects on UK exporters.”