Germany: Exports grow unexpectedly in July
September 7, 2012
In July, exports increased 0.5% over the previous month in seasonally adjusted terms. The reading contrasted the revised 1.4% drop recorded in June (previously reported: -1.5% month-on-month) and defied the 0.5% contraction expected by the market. Imports followed suit and increased 0.9% in July, which contrasted the 2.9% decline observed in June. Compared to the same month a year ago, exports accelerated from a 7.5% increase in June to a 9.2% expansion in July (EUR 93.6 billion), which represents the fastest pace recorded since January. Imports expanded 1.9% in July (EUR 76.7 billion), slightly faster than the 1.5% increase recorded in June. As a result, the trade surplus widened to EUR 16.9 billion, which was above the EUR 10.4 billion registered in the same month last year. The Federation of German Wholesale, Foreign Trade and Services (BGA) expect export growth to reach 6.0% this year, which would push exports to a new-record high of EUR 1.12 trillion.
Author: Ricardo Aceves, Senior Economist