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Despite the slowdown in the global economy, German exports are exceeding expectations

BERLIN, Oct 5 (Reuters) – German exports rose slightly more than expected in August despite a slowing global economy, rising interest rates and material shortages, the statistics office said on Wednesday.

Stronger demand from the United States and China helped exports surge to 133.1 billion euros ($132.59 billion) in August, up 1.6% mom.

Imports also rose more than expected by 3.4% to 131.9 billion euros, the seventh consecutive month of growth.

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A Reuters poll had forecast a 1.1% monthly increase in both exports and imports.

Analysts welcomed August’s numbers but warned that exports could become a drag on growth given the bleak economic outlook.

High energy costs due to the war in Ukraine are slowing down domestic production, which will have a negative impact on exports, said VP Bank chief economist Thomas Gitzel.

“With its strong export industry, the German economy is particularly exposed to the global economic adversities,” he said.

Germany’s seasonally adjusted trade surplus fell short of expectations at 1.2 billion euros in August, versus analysts’ forecasts of 4 billion euros, according to the statistics office.

“The war in Ukraine has done what nothing has done before: made the notorious German trade surplus disappear,” said ING economist Carsten Brzeski.

“Unfortunately, it’s not a ‘good’ trade surplus disappearance, driven by stronger domestic demand, but rather a ‘bad’ disappearance, driven by high energy prices and structurally weaker exports,” he added.

A detailed table of German exports and imports can be found on the Statistical Office website.

($1 = 1.0038 euros)

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Reporting by Rene Wagner and Miranda Murray Editing by Paul Carrel and Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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