Several eminent economists have attacked the Eurozone’s post-2008 economic strategy and warned that it could blunder into depression.
During a recent gathering of Nobel prize-winning economists at Lake Constance, Germany, Prof Joe Stiglitz said austerity policies had been a “disastrous failure”, while Prof Peter Diamond said: “Historians are going to tar and feather Europe’s central bankers”.
With Germany’s economy slowing, growth in France stagnating, leading to a mass Government resignation at the weekend, and Italy and Cyprus also contracting this is not good news for the UK’s businesses.
Europe is traditionally the UK’s biggest export market and the current situation is not encouraging despite economic recovery and signs of growth in the UK.
In fact, they are facing a double whammy because £ Sterling is so strong at present making exports to Europe expensive and therefore impacting on both margins and sales. And, if, as has been suggested the European Central Bank embarks on printing more money (quantitative easing) to ease its own dire situation this will further impact on UK sales to Europe by making exported goods and services even more expensive for European customers.
There is a genuine concern that any UK export-led growth, especially to Europe, could be stifled by the high value of £ Sterling.
In this uncertain market businesses, as we have said before, will need to broaden their horizons and look for export opportunities elsewhere.
Has anyone any suggestions for a promising potential export market and also which UK sectors might benefit?