Trade Surplus in Germany

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The report investigates how the real exchange rate and GDP influenced Germany's trade surplus from Q2 1993 to Q1 2007, revealing significant impacts from both factors. Utilizing piecewise linear regression, it highlights shifts in the trade surplus trend, particularly noting a temporary decline between Q1 1998 and Q4 2002 linked to fiscal and monetary policy changes during the Euro's introduction. This analysis provides insights into the dynamics of Germany's trade balance in the context of broader economic policies.