Germany: Trade surplus widens as exports increase/OR/due to increasing exports
August 8, 2013
In June, the seasonally and calendar adjusted trade balance recorded a EUR 15.7 billion surplus. The figure marks an improvement compared to the EUR 14.6 surplus observed in May and exceeded market expectations of a EUR 14.9 billion trade surplus.
The trade surplus widened in June as exports grew 0.6% over the previous month in seasonally adjusted terms (May: -2.0% month-on-month). The reading, however, came in below market expectations of a 0.9% expansion. Meanwhile, imports swung from a 1.4% increase in May to a 0.8% decline in June.
Compared to the same month last year, overseas sales declined 2.0% in June (May: -4.4% year-on-year). As a result, the 12-month sum of exports up to June increased 0.9% to EUR 1.1 trillion. In contrast, imports decreased 1.1% annually in June (May: -2.8% yoy), which prompted the 12-month sum of imports up to June to decline 1.1%.
The Federation of German Wholesale, Foreign Trade and Services (BGA) expects exports to grow 3% this year to EUR 1.13 trillion. The BGA added that by 2025, more than half of German exports will be shipped to countries outside the European Union. In 2012, nearly 60% of German exports went to EU countries.
Author: Ricardo Aceves, Senior Economist