Germany: Exports jump in April
June 7, 2013
In April, the seasonally adjusted trade balance recorded a EUR 17.7 billion surplus, which represents a slight improvement compared to the EUR 17.6 billion observed in March.
Exports jumped a seasonally and working-day adjusted 1.9% over the previous month. The reading was well above the 0.5% increase registered in March and exceeded market expectations, which had overseas sales rising only 0.2%. Imports followed suit and surged 2.3% in April, well above both the 0.7% expansion registered in the preceding month and market expectations of a 0.5% rise.
Compared to the same month last year, shipments abroad soared 8.4%, which contrasts the 4.2% decline recorded in March and marks the fastest pace since October 2012. As a result, in the 12 months up to April exports grew 2.2% (March: +1.7% year-on-year) to EUR 1.1 trillion. Meanwhile, imports rose 5.1% annually in April, which contrasts the 7.0% plunge registered in March. Accordingly, in the 12 months up to April, imports declined 0.6%, an improvement over the 1.1% fall seen in March.
The Federation of German Wholesale, Foreign Trade and Services (BGA) anticipates that export growth will continue to strengthen and record 5% this year to push overseas sales to EUR 1.2 trillion.
Author: Ricardo Aceves, Senior Economist