OECD COMMENTS ON EUROZONE GDP

According to an article in The Washington Post, http://www.washingtonpost.com/business/ecmy/oecd-warns-risk-of-severe-recession-in-17-country-eurozone-is-rising-as-it-cuts-forecasts/2012/05/22/gIQAmSjNhU_print.html, the OECD (Organization for Economic Cooperation and Development) Chief Economist, Pier Carlo Padoan, said that The EuroZone Economy risks falling into a severe recession and could contract by as much as two percent in 2012. The EuroZone is the group of 17 countries that use the common currency.

Although the article doesn’t mention it, I seriously wonder what the sixteen EuroZone Countries GDP projection would be if Germany were excluded. One of the reasons that Germany embrac es the Euro Currency is because, as an export powerhouse, Germany benefits significantly by the weak currency. If Germany had to go back to using the stronger Deutschmark, its products would suffer because they would be more expensive on World Markets.

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