Germany: Trade balance hits new record high in July, on back of solid exports
September 8, 2015
The seasonally- and calendar-adjusted trade surplus widened from EUR 22.1 billion in June to EUR 22.8 billion in July, marking a new record high. The trade surplus increased over the previous month as exports grew at a faster pace than imports. Exports rose a seasonally-adjusted 2.4% over the previous month, which marked the largest gain in seven months (June: -1.1% month-on-month). Meanwhile, imports expanded 2.2% in July, which contrasted June’s 0.8% decrease and represented a ten-month high.
Compared to the same month last year, exports gained 6.2% in July, which was down from June’s 13.5% growth that had marked the fastest annual expansion since August 2011. Imports growth was little changed at 6.1% in July (June: +6.0% year-on-year). The 12-month sum of exports to July grew 6.0% over the same period last year and the 12-month trade surplus totaled EUR 244.7 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 exports started the second half of the year on a very solid footing, defying the generally rather subdued developments in the global economy. The BGA added that the weak euro supported demand for German goods in third countries along with the continued rise in demand from Europe and especially from the euro zone, German foreign trade was currently at a record rate. Moreover, the BGA sees the fact that imports growth is approaching exports growth as another indication of the currently strong consumption in Germany and as positive for further economic stabilization, especially in the euro zone.