1-3Q 2006 Slovenia Foreign Trade Analysis: Top 15 vacuum pump discharge ports (with photos)

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In the first three quarters of 2006, due to the favorable international economic environment, the continuous recovery of the euro zone economy and the steady growth of domestic demand in European countries, Slovenia's foreign trade enjoyed a strong growth momentum. January-September, Slovenia's total import and export volume of 25.35 billion euros, up 15.5% over the same period the previous year, of which 12.23 billion euros in exports, an increase of 15.6%, imports 13.22 billion euros, an increase of 15.4%. The trade deficit was 890 million euros, an increase of 107 million euros over the same period of last year, and the export compensation import rate was 93.2%. First, Sri Lanka's EU-China trade still accounts for a large part of its foreign trade and continues to maintain rapid growth. It is also the main source of Sri Lanka's foreign trade deficit. The EU has always been Sri Lanka's main trading partner. Since the accession to the EU, Sri Lanka's trade volume with the EU has continued Rapid growth. From January to September 2006, the total import and export volume of Slovenia and EU countries was 18.87 billion euros, up 15.8% over the same period of last year, accounting for 74.4% of the total import and export volume of Sri Lanka. Of which, exports reached 8.39 billion euros, up 16.6% over the same period of the previous year, accounting for 68.6% of the total export volume. The import was 10.47 billion euros, up 13.1% over the same period of previous year, accounting for 79.8% of the total. Import and Export Statistics for January-September 2006 (Billion Euros) Source: SITIS preliminary foreign trade data released in November At the same time, the trade deficit with EU also continued to increase, reaching 2.08 billion euros in the first three quarters of this year, The main source of deficits. More than half of the deficit was offset by a surplus with non-EU countries (1.18 billion euros), with the major surpluses coming from the trade with Yuenan and the rest against the balance of tourism revenue. The continuous and rapid increase in the total volume of trade with the EU benefited from the unification of the EU's large market and a favorable trading environment. With the EU removing and simplifying a number of trade barriers within the reunified territory, it has facilitated the free movement of personnel, goods, services and capital among member states. The EU's trade with EU member states is more transparent, convenient and cheaper. At the same time, the trade transfer and the creation effect brought by the enlargement of the European Union have also created new opportunities for the mutual trade with the EU member states, thus promoting the continuous growth of trade between the EU member countries and the old EU member states. In addition, Sri Lanka joined the new European Exchange Rate Mechanism (ERMII) in June 2004 with a fixed exchange rate of 239.64 toilar / euro for toral and the euro, and the upcoming use of the euro (January 1, 2007) Enterprises to reduce foreign exchange transaction costs, to avoid exchange losses provide a strong guarantee, but also to promote the Sri Lanka and the euro zone countries trade growth. Second, Sri Lanka's main trading partner countries and the advantages of export products From January to August 2006, the top ten trading partners as follows: Germany, Italy, Austria, France, Croatia, Hungary, Russia, the Netherlands, the United Kingdom, Poland. During the same period, Sri Lanka's major import commodities are: petrol products, automotive and transportation equipment and components, pharmaceuticals, liquefied petroleum gas, metal products, insulated cables, data processors, machinery and equipment, power and energy, leather, tires and rubber products. (See Appendix 1 for the first 20 categories of imported goods in Slovenia for the first seven months of 2006) The major export categories are: Automotive, Transport Equipment and Components, Pharmaceuticals, Metal Products, Power & Energy, Tires and Rubber Products, Electrical Products And components, furniture products, paper products. (See Appendix 2 for the first 20 categories of exports in Slovenia for the first seven months of 2006) In the first half of 2006, due to the decrease in demand from other major trading partners other than the United Kingdom and Germany, the traditional export products (such as automobiles and other roads Transport Equipment) The overall export growth slowed down from 7.9% in January-June to 35.4% in the same period of last year. Exports of other goods increased significantly (an increase of 18.4% in January-June). In the same period, in terms of trade with member states of the EU, Sri Lanka exported road transport equipment such as automobiles to Germany and the United Kingdom, and exported electricity and energy to Austria and Italy all witnessed steady growth. In terms of trade with the former Yugoslavia, the total import and export volume between January-August and the former five countries (Serbia and Montenegro, according to one country at a time, and Kosovo's statistics to June) amounted to 2.63 billion euros, accounting for 10.4% of the total foreign trade volume. Of which Sri Lanka exports 1.76 billion euros, an increase of 10.4%, Sri Lanka imported 870 million euros, an increase of 37%. Sri Lanka's trade surplus with the former South Africa amounted to 890 million euros, the main source of balance for the foreign trade deficit. Among them, Sri Lanka's exports to Bosnia and Herzegovina and Macedonia declined more (5.6% and 11.4% in January-August respectively) and significantly increased exports to Croatia and Serbia and Montenegro (13% and 25.7% in January-August respectively). However, for external exports, Sri Lanka's export growth to the former South (10.4%) is smaller than that of the EU (17.1%). III. After joining the Eurozone, Sri Lanka's trade with EU countries will continue to grow at a steady pace and will lead to the steady growth of the overall foreign trade. After joining the Eurozone on January 1, 2007, Sri Lanka's trade and exchange with the Euro-zone countries and the EU will be even more convenient Trade relations will be closer and the volume of trade will continue to maintain a steady increase, thus boosting the overall growth of the overall foreign trade. From an international perspective, the European Commission recently raised the forecast for the euro zone's economic growth in 2006 from 2.5% to 2.1% from the previous 2.1%. It is expected that the economy of the euro area will maintain a steady growth in 2007-2008, which will provide Sri Lanka with a favorable international environment for further expanding trade with the countries in the euro area. The EU Commission and Sri Lanka's "Institute of Macroeconomic Development" (IMAD) are both optimistic about the economic development of Sri Lanka. They forecast 2006 economic growth of 4.3% and 4.2% respectively. In addition, the accession to the EU, the more industrial investment opportunities brought by the accession to the Eurozone, the opportunities for trade in services and the ever-increasing tourism and trade opportunities are all favorable conditions for the further development of foreign trade. In the future, the Sri Lankan government will continue to actively participate in EU affairs and promptly improve its own macroeconomic policies and laws in line with the EU's unified foreign trade policies and relevant directives so as to create the necessary conditions for the stable development of its foreign trade. At present, the Sri Lankan government is stepping up its efforts to promote all relevant legislative reforms, including the new "Company Law" and "Chamber of Commerce Laws," so as to promote the flexibility and innovation capability of enterprises. At the same time, the Sri Lankan government also continued to take various measures to increase its efforts to attract foreign investment and support domestic enterprises to explore overseas markets. This series of measures will all be effective in boosting Sri Lanka's participation in international competition and expanding its presence in the international market. IV. Problems Exist Despite the steady growth of foreign trade and optimistic expectations, there are also some potential unfavorable factors: 1. The trend of rising and fluctuating international oil prices will likely have a negative impact on the overall European economy and will lead to a drop in domestic demand. Reduce import demand; 2. The price increases of various resource products and intermediate products in the world are also detrimental to the processing and manufacturing industry, especially for such countries as Sri Lanka, which is resource-poor, has a narrow market and is highly dependent on the international market, and its production cost fluctuates Will seriously affect the export of products; 3, Sri Lanka Sri Lanka current labor costs increased rapidly, the national economic competitiveness has declined. EU's technology, capital investment and demand for manufactured goods may shift to other newly-joining countries with lower costs. 4. The potential inflation risk after joining the Eurozone may have a negative impact on foreign trade. Table 1: Top 20 Slovenian Imports from January to July 2006 Source: Slovenian Chamber of Commerce and Industry Table 2: Top 20 Slovenian Exports from January to July 2006 Source: Slovenian Chamber of Commerce and Industry

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