Exports lead Euro area GDP growth in Q2

Euro area Q2 GDP posted +0.4% puarter on quarter growth, although stronger exports offset a significant investment contraction and a slowdown in consumption. 

Rebalancing the growth rate should be short-lived: the strength in exports in H1 15 (5.5% SAAR) was at odds with the weakness of foreign demand (+1.5% SAAR) and probably resulted from the lagged effect of euro depreciation in H2 14 on a real trade-weighted basis, which boosted euro area competitiveness. 

"Therefore, as reflected in our in-house export performance indicators, euro area exporters have gained sizeable market shares in the first half of 2015, particularly German and French exporters", says Barclays. 

For example, sales to China were down 2.3% in H1 15 compared with H2 14, while Chinese imports over the same period were down 3.7%. For the U.K., the numbers were 0.6% and 2.3%, respectively. Switzerland was quite illustrative of the effect of the weaker euro on competitiveness: Swiss imports were down 7.5% in Q2 15, while exports from the euro area to Switzerland were up 1.6%. claim Barclays.