Germany stands out

Article Excerpt

The German economy grew at an annualized rate of 9% in the second quarter of 2010. Unemployment has dropped for 14 consecutive months, and is now at 7.6%. That’s the lowest since 1992, and about where it was before the recession. The German economy contracted 4.7% in 2009. Germany has the largest economy in Europe, and the world’s fourth largest. It’s the second-biggest global exporter, behind China. German exports, which account for 45% of its economy, have been rising. That has helped Germany rebound while other European countries, such as Ireland, Greece, Spain and Portugal, struggle. Those struggles have kept the euro low — it’s down 10% against the U.S. dollar since the start of this year. That has made German exports cheaper for global buyers. China, in particular, is a growing market for high-profit-margin German exports, such as cars, machinery and specialty chemicals. German stocks should continue to gain, even if the recovery slows in the U.S. and Europe. However, a stronger recovery in…