Want to hear the heartbeat of global trade? Listen to German exporters!
German economic indicators are particularly well-placed as precursors of global trade momentum, thanks to a combination of the economy’s key characteristics. Volumes clearly matter: with a share in global exports of 8%, Germany is the world’s third-largest exporter. However, proxy power is also a result of the German economy’s trade openness, as well as the broad-based nature of its exports – in terms of sectors and trade partners. As a result, German economic indicators arguably contain a high information content on global trade activity.
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