- Angela Merkel, German Chancelor
German exports plummeted the most since January 2009, adding to latest signs Europe's number once economy struggles to recover from the second-quarter slowdown. Exports plunged 5.8% in August following a 4.8% jump in July, according to the Federal Statistics Office. German imports fell as well, declining 1.3% in August after dropping 1.4% in July. This has resulted in country's surplus narrowing to 14.1 billion euros from a record of 23.5 billion euros. The current account surplus shrank to 10.3 billion euros from 20.1 billion euros. In the meantime, while Germany's economy slowing, France barely growing and Italy is in the third recession since 2008, Angela Merkel, German Chancellor, questions French President Francois Hollande urge to use stimulus to support Europe's fragile recovery, stressing investments need to be carefully considered. Hollande and Italian Prime Minister Matteo Renzi call for the EU to use flexibility in its budget rules in the light of slowing growth and are urging the bloc to increase spending creating jobs for the one in five young people who are jobless.
A recent report of the OECD showed that the Euro zone will remain the world economy's weak link, as economic growth in Germany and Italy lost traction in August while other developed economies showed stable growth. The OECD's leading indicator came in at 100.4 in August.
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