Euro: We should not forget that exchange rate depreciation is good for industry, but bad for the economy as a whole

There is often confusion about the effect of exchange rate depreciation. A depreciation of the exchange rate: Is positive for industry, whose competitiveness it improves; But is negative for the economy as a whole, due to the deterioration in the terms of trade (the rise in the relative price of imports). The recent trend in the euro will therefore be positive for industry, but will reduce overall growth in the euro zone, especially since commodity prices are high.