We hear about Germany manufacturing competitiveness vs. most of Europe, but this chart below from a recent Citi really puts things in perspective. Growth in German and Swedish new manufacturing orders has continued to soar, while that of many other nations has reversed hard.
This chart is a small depiction of Europe’s greater economic coordination problem. It’s hard to share monetary policy (though note Sweden isn’t in the Eurozone) when you’re economies are moving in opposite directions.
(Chart via Citi, Inside the S&P 500, Steven Wieting, 17 May 2010)