Germany’s strong exports ease stagnation fears

  • by Ofeed Team
  • September 9, 2019, 13:53 AM
  • 99 Views
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German exports rose in July to record an unexpected strong beginning in the third quarter, suggesting that Europe’s biggest economy may withstand negative impacts stemming from the trade war and Brexit uncertainty. 

The Federal Bureau of Statistics said seasonally adjusted exports rose by 0.7 percent on a monthly basis, while was 3.8 percent up from a year earlier. Imports, on the other hand, fell 1.5 percent and was down by 0.9 percent from a year ago.  

Accordingly, the trade surplus widened to 20.2 billion euros after adjusting 18.0 billion euros the previous month. 

Strong beginning was unexpected, as economists have indicated a 0.5% drop in exports and a 0.3% decline in imports. The trade surplus was expected to reach 17.5 billion euros in July. 

The upbeat data came after a parade of weak economic, which fueled fears that the economy may stagnate for the third quarter in a row.  

Data showed today that from January to July, German exports rose by 1.0 percent, the strongest contribution came from markets outside the EU, which recorded growth of 2.9 percent in the same period. 

Germany's GDP contracted by 0.1% on a quarterly basis due to weak exports, with foreign sales pulled down by weakening demand from Britain and Chinese. 

Against this gloomy backdrop, the European Central Bank is expected to restart its bond purchases during its policy meeting on Thursday.   

As of 09:47 GMT, the euro traded higher versus the U.S. dollar at 1.1038, after it posted a weekly gain last week.

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