Don’t Blame Germany’s Export Weakness on Slowing China

(Bloomberg) --

German export growth has plunged from around 8% year-over-year to next to nothing. It’s easy to blame China’s slowing economy for Germany’s weakness, but that’s only a part of the story, research by Bloomberg Economics shows: about half of the export slowdown is accounted for by Germany’s euro-area trading partners and half stems from the rest of the world. Within that, only about 1 percentage point is directly related to weaker trade with China.

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