Nevertheless, extra-euro area export volumes have been growing above their historical trend in recent years due to the persistently robust growth in foreign demand which, in turn, seems to be driven by globalisation forces. However, competitiveness is a key issue and important questions remain on how exposed the euro area and its members are to competition from emerging economies.
Competitiveness may, in turn, depend in part on how closely the specialisation of the euro area resembles that of new global competitors such as China. On the whole, euro area exporters tend to specialise in medium-tech sectors but seem somewhat over-weighted in labour-intensive product segments where China has a natural comparative advantage.