Germany: Exports bounce back in 2010 after the worst slump in two decades
February 9, 2011
In December, exports rose a seasonally and calendar adjusted 0.5% over the previous month, which repeated the expansion observed in November but fell short of private analysts' expectations, which saw exports growing 1.0%. Meanwhile, imports fell 2.3% over the previous month, contrasting both the 4.1% expansion registered in November and analysts' expectations of a 0.8% rise. On an annual basis, exports expanded 21.0% in December, which virtually maintained the pace observed in November (+20.6% year-on-year). Imports increased 26.8%, below the 31.6% expansion observed in November. As a result, the trade balance narrowed from EUR 13.1 billion in November to EUR 11.9 billion in December. For the full year 2010, exports grew 18.5% to reach EUR 952 billion, bouncing back from the 18.4% contraction observed in 2009, and representing the fastest growth rate in over two decades. In 2009, Germany lost the crown as the world's leading exporter to China, a title that China is expected to keep going forward. Exports are likely to remain in an upward trend, as global demand continues to recover, especially in emerging markets.
Author: Ricardo Aceves, Senior Economist