Data released on Tuesday showed that German exports and imports declined in April, marking their largest decline since 1990, as the Coronavirus crisis reduced demand, adding to the bleak outlook for Europe's largest economy.
Many economists believe that the pandemic will push the German economy to its largest decline since the end of World War II in the second quarter.
Seasonally adjusted exports decreased by 24% during April, while imports dropped 16.5%. The Federal Statistics Office said that the trade surplus narrowed to 3.2 billion euros from a surplus of 12.8 billion euros in March.
Despite the stimulus package of 130 billion euros announced last week, which comes on top of the 750 billion euros of measures announced in March, the government expects the economy to contract by 6.3% this year.
Economists expect a slow recovery and the pace will largely depend on how quickly Germany's European neighbors and other trade partners, including China and the United States, emerge from the crisis.
The office said that exports to France and the United States, which were severely affected by the Corona crisis, declined further while exports to China have started to witness some signs of recovery.
As of 09:15 GMT, the
euro traded lower for a third straight session versus the US dollar at 1.1257,
resuming its downside correction from last week’s top of 1.1383, which was the
highest since March 10.