Weak euro leads to increased eurozone exports

The weak euro has led to an increase in exported goods from the eurozone to the rest of the world in March, according to recent figures.

Overall, there was an 11 per cent increase in exports, while imports were up seven per cent. During the first quarter of 2015, exports were up five per cent compared to the same period last year. 

Eurostat, the European Union's statistics agency, recently released figures, which showed that the low value of the currency has boosted the export of goods from the region. It has also led to a higher trade surplus and aided in economic recovery, reports the Wall Street Journal.

The news comes after consumer prices stopped falling in April – there had been four straight months of decline previously.

Eurostat reports that the 19 countries that use the euro had a €23.4 billion (£16.87) surplus in their trade goods. This was up from €16.1 billion in March 2014.

Quantitative easing

Since May 2014, the euro has been depreciating against the dollar, as well as other major global currencies. That downward trend continued into the first quarter of 2015 when the European Central Bank began its program of quantitative easing (QE).

QE will involve the purchase of more than €1 trillion of mostly government bonds, using freshly created money. This process wil continue through September 2016 and will result in an increased supply of euros.

Germany

A survey carried out by DIHK German Chambers of Commerce found that 53 per cent of the German companies questioned expect their overseas business to grow during the next year. Less than half (41 per cent) predict no change and only six per cent believe they will do worse.

Chairman Rainer Hundsdoerfer from Germany's ebm-papst group noted that there hasn't been a huge increase in export volumes to the US.

"But the weaker euro should certainly support our business in the coming months and we expect for the current financial year US sales growth of about six per cent," he added.

DIHK's forecast is for Germany's overall exports to grow by around six per cent this year and next.