EU Credit Crunch Takes its Toll on Exports Despite Weak Euro

As released by Eurostat yesterday, the Eurozone and EU GDPs for the fourth quarter of last year dropped into negative territory. Looking at the components of the calculation, exports were down -0.4%. This was during a period when the EUR had weakened considerably against the dollar in the aftermath of the S&P downgrade of the US and subsequent equity markets sell-off. Usually a weaker currency should boost exports rather than dampen them. Also throughout Q4 the economies of