Exports to EU Continue to Grow Despite Euro Crisis
With all of the bad economic news coming out of Europe, you might think that the US economy would suffer as a result. In fact, this blog has even argued that a strong correlation exists between the European and American business cycles. However, despite this connection, American exports to the 27 Member States of the EU are in fact booming. As the below graph shows, total exports from the US to the EU are up 15% compared to last year. Many Midwestern States are doing even better, as exports from Illinois are up 33%, the Buckeye State’s exports increased 22%, while Michigan rose 17%. Indiana saw its trade increase by 3%.
Among the 27 Member States, Indiana’s exports were mixed. The value of the goods sent to the United Kingdom and France (the Hoosier State’s 2nd and 3rd largest European trade partners) actually fell. However, despite the fear of default in Italy and Greece, trade with the five PIIGS (indicated in orange on the below chart) overall increased. Portugal’s imports from Indiana doubled, while those to Ireland increased by 55%. Even trade with the two weaker countries—Spain and Italy—increased by 12% and 8% respectfully. Only exports to Greece fell (by 9%) among the five PIIGS.