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Julien Behal/PA Wire/Press Association Images

Fall in German exports causes concern over European crisis

Imports were 3 per cent lower in June, following a 6.2 per cent increase the previous month.

GERMAN INDUSTRIAL PRODUCTION and exports dropped in June, official data showed today, underlining concerns that Europe’s debt crisis is increasingly weighing on the region’s biggest economy.

Industrial production was down 0.9 per cent in June compared with the previous month, the Economy Ministry said. That figure, which was roughly in line with economists’ expectations, followed a 1.7 per cent increase in May – revised upward from the initial reading of 1.6 per cent. Production of investment goods such as factory machinery was down 1.6 per cent in June.

Earlier this week, official figures showed that industrial orders dropped by an unexpectedly large 1.7 per cent in June, led by a slide in orders from other countries that use the euro.

The German economy, Europe’s biggest, so far has been relatively unaffected by the debt crisis afflicting its eurozone partners.

But second quarter output figures due next week are expected to show growth slowing from the healthy first quarter figure of 0.5 per cent, and business confidence is fading.

Production was “relatively robust” in the second quarter but future is “restrained” given recent order figures, the Economy Ministry said in its statement Wednesday.

Also Wednesday, the Federal Statistical Office said exports -a key motor of the German economy – were down 1.5 per cent in June compared with the previous month at €92.3 billion in figures adjusted for seasonal and calendar effects. That followed a 4.2 per cent increase in May.

Imports were 3 per cent lower, following a 6.2 percent increase the previous month.

In year-on-year terms, the statistical office said that exports in June were up 7.4 per cent, fueled by a 19.8 per cent increase in demand from countries outside the European Union. In contrast, exports to other countries that use the euro were down 3 per cent.

For the year’s first half, total exports were up 4.8 per cent compared with 2011. Demand from outside the EU rose 11.1 per cent, while exports to eurozone partners declined by 1.1 per cent. Germany’s trade surplus stood at €17.9 billion in June, up from €15.6 billion in May.

Growth forecasts

Andreas Rees, an economist at UniCredit in Munich, forecast quarter on quarter growth of 0.2 per cent, which would contrast with recessions in several other economies in the 17 country bloc that uses the euro.

“The million-euro question is whether and how long German companies and consumers can keep the pace in the face of eurozone turbulence,” Rees said. Specifically, he said, much depends on whether further eurozone weakness will be compensated for by higher US and Chinese demand, and whether strong internal demand can shield Germany’s economy.

“We still think that both questions can be answered with a ‘yes’ but uncertainties and downside risks to our call have significantly increased of late,” Rees wrote in a research note.

Germany is one of the few eurozone countries that still enjoys the top AAA rating from all three major credit rating agencies. On Wednesday, Fitch Ratings reaffirmed that rating and its stable outlook.

“The affirmation reflects Germany’s longstanding credit strengths and robust economic performance over the past two years,” the agency said in a statement.

Standard & Poor’s also affirmed its top credit rating and outlook on Germany last week, but rival Moody’s last month lowered its outlook on the country to “negative”, citing its concern over Germany’s exposure to risks posed by Europe’s ongoing crisis.

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13 Comments
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    Mute Al
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    Nov 3rd 2015, 4:16 PM

    I Love Dublin.

    66
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    Mute Old Gabby Johnson
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    Nov 3rd 2015, 6:30 PM

    Its a kip.

    21
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    Mute Integra-Ted
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    Nov 3rd 2015, 6:33 PM

    Don’t let the door hit you on the way out of Dublin so!

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    Mute john
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    Nov 3rd 2015, 4:22 PM

    Stunningly lyrical piece..very entertaining…

    50
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    Mute Cosmo Kramer
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    Nov 3rd 2015, 4:14 PM

    While Dublin has some brilliant People living in it and is very pretty it has turned into a dump.. The City Centre is full of junkies, drunks and gangs of young lads running riot. Beatings and stabbings are nearly a nightly occurrence and there’s not a Guard in sight.. Open drug dealings and drug taking can be seen all over the city centre..

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    Mute Al
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    Nov 3rd 2015, 4:18 PM

    Slight exaggeration. You always get one….

    40
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    Mute Harry Sheils
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    Nov 3rd 2015, 4:58 PM

    Got goosebumps listening to that. Fantastic.

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    Mute Vicko Aguilar
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    Nov 3rd 2015, 5:49 PM

    Beautiful! I ❤️ Dublin

    28
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    Mute Johnny
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    Nov 3rd 2015, 5:08 PM

    Dublin in a Cultural Jewel of Europe….not many cities have produced the amount Dublin has…U2 Bram Stoker Yeats Shaw Lynott Geldoff O’Hara and on and on the list goes….it took me a while but I love the city…not perfect but us Irish are far from perfect…

    About the controversy in Limerick City of Culture 2014…why feel the need to mention over and over again it when it was completely over amplified across the entire media infrastructure at the time…it was the 1st significant investment in culture in a City whose reputation had been destroyed by media…and it was the first city to expose political interference in Culture and how it is funded!!!

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    Mute joeythelad
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    Nov 3rd 2015, 4:51 PM

    I have been to a lot of European cities and I can tell you , you seldom seen junkies injecting openly on the streets ,mothers and fathers going around with kids in prams strung out , dirt and dog pooh and chewing gum littering the streets ,muggings, pickpockets, shoplifting , loads of stabbings and the frequent murder and theres much more I can add ,but that’s what Dublin is and that’s what I call a dump

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    Mute danielplainview
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    Nov 3rd 2015, 6:22 PM

    You’re what I call a dope

    24
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    Mute Ana Nonymous
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    Nov 3rd 2015, 8:32 PM

    Have to agree with what you have to say beautiful piece though!

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    Mute Diarmaid O'Fionnachta
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    Nov 4th 2015, 1:30 AM

    Joey you;d wanna go to Rome. Very sketchy, much more so than Dublin!

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    Mute Sean @114
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    Nov 3rd 2015, 9:27 PM

    Like every city it has it’s problems but the pros far outway the cons……. The view across Dublin bay from Howth head, the Phoenix Park, shielded by beautiful mountains, great night life, welcoming people, culturally diverse, Croke Park, Guinness Brewery, great museums and gallerys, fantastic georgian areas, beautiful canals etc etc. Does it have drug and crime problems? Absolutely. It needs to be dealt with urgently by those elected to do so. Is everyone full of top o the mornin to you and cead mile failte? No the natives are by and large welcoming and witty but like any city we have our troubles and strifes. Overall though it’s a smashing city, with great characters, lots of variety and is a pretty hip place to live. I’m proud to tell people that I am Irish and I am from Dublin.

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    Mute joeythelad
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    Nov 3rd 2015, 7:02 PM

    If people cant see what I say when they go into town they must be blind

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    Mute Qwerty
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    Nov 3rd 2015, 8:42 PM

    Remove beggers, bucket shakers and buskers. Then it would be much nicer.

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    Mute Catherine Mc
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    Nov 3rd 2015, 9:24 PM

    This it wouldn’t be Dublin !

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    Mute Qwerty
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    Nov 3rd 2015, 9:33 PM

    It would still be Dublin. Just without the harassment on the streets. It’s important to get rid of buskers and street performers too. It’s just begging via proxy. People should be forced to walk on the left on Grafton Street. Very annoying when you just need to get from A to B and Grafton Street is an obstacle course. Ban chewing gum all around the country too.

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    Mute Rathminder
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    Nov 4th 2015, 7:54 AM

    The audio was brilliant. Did the video need to begin with such dismal city scenes? Dublin is a city of golden light and great beauty as well as grey and dismal streets.

    2
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