Germany: Trade surplus increases in April on expanding exports
June 6, 2014
The seasonally- and calendar-adjusted trade surplus widened to EUR 17.7 billion in April from the revised EUR 15.0 billion surplus registered in March (previously reported: EUR 14.8 billion) thus making the highest surplus in five months. The reading overshot the EUR 15.1 billion surplus the markets had expected.
The trade surplus rose in April as exports expanded a seasonally-adjusted 3.0% over the previous month, making the strongest increase in nearly two years. The reading contrasted the 1.8% contraction tallied in March and doubled the 1.5% increase market analysts had expected. Imports expanded just 0.1% in April, though this marked an improvement over the 1.1% contraction registered in March.
Compared to the same month last year, exports decreased 0.2% in April (March: +1.9% year-on-year), which marked the first contraction since August 2013. Imports growth slowed considerably from 5.4% in March to 0.5% in April. In the 12 months up to April, exports expanded 0.4% over the same period last year and the trade surplus reached EUR 198.1 billion.
The Federation of German Wholesale, Foreign Trade and Services (BGA) expects exports to expand 3.0% in 2014 and to reach a record level of EUR 1.14 trillion. The BGA expects the trade surplus to reach EUR 224 billion.
Author: Ricardo Aceves, Senior Economist