Germany (EUR, Euro) Economic & Currency Analysis

Germany (EUR, Euro) Currency FX Analysis

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Short Term Rating Currency Ratings Help
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Long Term Rating Economic Ratings Help

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Germany SWOT Statistics

Strengths + Opportunities = 24

Threats + Weaknesses = 28

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Euro has great long term potential.

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The German economy is the fourth largest economy in the world in GDP and Europe's largest. Germany’s main exports are machinery, vehicles, chemicals, and household. Germany is relatively poor in raw materials and only has lignite and potash salt available in economically significant quantities. Power plants that burn lignite provide most of the electricity in Germany. The German economy has three main sectors; the service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. In 2010, the ten largest stocks by revenue were Volkswagen, Allianz, E.ON, Daimler, Siemens, Metro, Deutsche Telekom, Munich Re, BASF, and BMW.


Euro Currency Analysis Update

Germany (EUR) is the largest economy in Europe and relies on a strong and sophisticated industrial base to drive their exports. Germany's Fundamental Currency Analysis (short term investment): Germany is part of the Euro economic zone, whose currency is moderately valued on a global scale per the purchase price parity analysis. Germany's Value Investor Survey (short term investment): Germany’s economic environment is favorable for long term economic growth due to high scores on economic freedom, economic diversity, and government transparency. Germany's Currency Trading Strategy: An moderately valued currency, moderate investment flow potential and favorable business environment lead to a slightly positive outlook for German investments.


Factors That Positively Affect The Euro


Factors That Negatively Affect The Euro

  • Declining Birth Rate The effects of a declining population can be adverse for an economy which has borrowed extensively for repayment by younger generations; however, a smaller human population has a smaller impact on...