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Daniel Kral: Eurozone exporters lost more competitiveness in U.S. market due to euro strength
Daniel Kral highlights that Eurozone exporters have experienced a larger loss of competitiveness in the U.S. compared to China, mainly due to euro appreciation.
He also points out that for other countries, a weaker exchange rate has helped offset the impact of tariffs. Despite these challenges, Kral states that the European Union will not pursue a strategy of competitive devaluation and is instead focused on building stronger protections around its single market.
Kral has previously noted a steady slowdown in EU gas storage refills, linking it to higher front month gas prices in recent months (EU storage refill is progressing slowly). He also reported that German industrial output dropped again in March, bringing the level to 17.5 percent below its end-2017 mark (German industry output now 17.5 percent below end-2017). These trends come as the region faces continued pressures from shifting trade dynamics and energy costs.
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