Germany: Trade surplus narrows on surging imports
August 8, 2014
The seasonally- and calendar-adjusted trade surplus totaled EUR 16.3 billion in June. The reading represented a decrease over the EUR 18.8 billion registered in May and also came in below the EUR 18.9 billion surplus the market had expected.
The trade surplus narrowed over the previous month in June as imports expanded faster than exports. Imports increased a seasonally-adjusted 4.5% over the previous month—the fastest monthly expansion since November 2010—and recovered from the 3.4% contraction tallied in May. Meanwhile, exports added only 0.9% in June, which contrasted the 1.1% decrease registered in May.
Compared to the same month last year, imports also accelerated and grew 6.7% in June (May: +4.5% year-on-year), which marked the fastest expansion in 30 months. Exports expanded 2.5% over June, which marked a slowdown over the 4.8% increase registered in the previous month. The 12-month sum of exports up to June grew 2.3% over the same period last year and the trade surplus totaled EUR 201.6 billion.
The Federation of German Wholesale, Foreign Trade and Services (BGA) recently stated that, despite the positive results in the external sector registered in the first half of the year, many exporters are concerned about the escalation of the trade conflict between Russia and the European Union.
Author: Ricardo Aceves, Senior Economist