Visiting the Continent Now More Affordable Than Ever as Euro Continues Slide Against Dollar
Traveling to Europe soon? Consider bringing an empty suitcase to carry home all of your purchases. The euro has dropped precipitously against the dollar over the past year to $1.146 and shows signs of achieving parity.
It was only a few years ago that the euro was at $1.45 and it was at $1.36 at the beginning of 2014.
As long as the U.S. economy continues to remain in better shape than Europe’s (the U.S. gross domestic product, a primary indicator of an economy’s health, grew 5% last year, supported by an increase in consumer spending, plus lower oil prices are putting more money in people’s pockets, while Europe is in the throes of an economic slump some consider worse than the Great Depression), the dollar will continue to gain against the European common currency.
Still, as they have in the past, things could change quickly. The European Central Bank announced a new economic stimulus plan in which it will purchase €60 Billion in assets each month starting in March and continuing through September 2016.
While you may not be an economist, you’ll appreciate economics more after you pay for your trip and purchases abroad.
(Photo: Accura Media Group)