DHL 2005 Annual Report Download - page 52

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e US economy proved stable: capital spending remained the growth driver along with
consumer spending. US GDP rose by a solid 3.5%, while foreign trade again impacted
economic growth. e current account decit, already extremely high, increased further
to US$790 billion or 6.3% of GDP.
Asia remains the number one growth region, despite a slight economic slowdown. GDP in
Japan grew by 2.8%. China continued to record outstanding economic growth: industrial
production was the driving force behind growth of almost 10%.
In the rst half of the year, the economy in the euro zone suered from the strong euro and
high oil prices. Although exports and investments as well as consumer spending showed
somewhat higher levels of growth over the rest of the year, GDP could only manage growth
of 1.3%.
e export industry proved to be a growth driver in Germany. Exports rose by 6.2%, and
the trade surplus accounted for the major part of the GDP growth of 0.9%. However,
domestic demand remained a weak point. Business condence in the development of the
economy increased substantially in the second half of the year.
Prices on the international crude oil markets continued to rise in 2005. Brent crude traded
at an average price for the year of US$54.5 per barrel – more than 40% higher than the
previous year.
At the end of 2005, the euro was quoted at US$1.18, representing a fall of 13.4% over the
course of the year. e euro also fell slightly against sterling during 2005.
e international equity markets recorded substantial price gains in 2005, although they
were impacted by high oil prices and continual key rate increases in the United States. In
the course of the year, the EURO STOXX 50 rose by 21.3% and the DAX by 27.1%, while
the S&P 500 had to settle for an increase of 3%.
On balance, long-term interest rates decreased slightly over the course of the year in the
euro zone, even though the European Central Bank raised its key rate in December for the
rst time in ve years. In contrast, yields rose slightly in the United States. e continued
extremely low level of interest rates again created a favorable environment for corporate
bonds.
0
20
40
1/3/2005 3/31/2005 6/30/2005 9/31/2005 12/30/2005
44.7
–12.5
–20
60
80
Brent crude spot price and euro/US dollar exchange rate
%
Brent crude spot price £
Euro/US dollar exchange rate £
Annual Report 2005
48