Germany: Exports record largest annual expansion in nearly four years
August 7, 2015
The seasonally- and calendar-adjusted trade surplus narrowed from EUR 22.6 billion in May to EUR 22.0 billion in June. The trade surplus decreased slightly over the previous month as exports shrank at a faster pace than imports. Exports dropped a seasonally-adjusted 1.0% over the previous month (May: +1.6% month-on-month). Meanwhile, imports fell 0.5% in June, which contrasted May’s 0.7% increase.
Compared to the same month last year, exports gained 13.7% in June (May: +4.5% year-on-year), which marked the fastest annual expansion since August 2011. Imports grew 6.4% annually (May: +2.9% yoy). The 12-month sum of exports to June grew 6.2% over the same period last year and the 12-month trade surplus totaled EUR 243.3 billion, reaching yet another all-time record high.
In a recent statement, the Federation of German Wholesale, Foreign Trade and Services (BGA) commented about June’s print in saying that German foreign trade in the first half of this year exceeded expectations. According to the BGA, trade was boosted by a revival of foreign trade with both EU and non-EU countries, with the latter receiving strong tailwinds from a weak euro. The BGA furthermore elaborated that while France, the USA and the UK currently still figure among Germany’s key trading partners, going forward increasing trade with emerging countries is needed for a longer-term positive development. Again this backdrop, the BGA welcomed the just-signed free trade agreement with Vietnam and the agreement on the nuclear negotiations with Iran.