Eurozone’s exposure to China is not significant – ECB’s Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - President Draghi, while addressing a question on China slowdown, said a marked slowdown in China would have a negative impact on the Eurozone through different channels – direct, indirect, confidence, and financial.

    Draghi said EZ’s total exports to China are just 6% of the total exports, but mentioned some countries like Germany have a larger exposure (10% of exports to China). Thus, a slowdown in China would have direct impact on countries like Germany.

    Furthermore, a slowdown in China would kill commodity prices and therefore poses downside risk to inflation – an indirect channel, Draghi said.

    The president added further that a marked slowdown in one of the biggest economy in the world could rattle confidence in the financial markets and business confidence.
    For more information, read our latest forex news.

Share This Page

free forex signals