German exports lower than expected in July

| September 8, 2011

Statistics office Destatis has today revealed German exports and imports fell in July a�� more than expected.

According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June.

Economists had forecast a 0.1% fall for the month.

The sharp fall in exports will be of grave concern for the countrya��s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 a�� much sooner than many of its counterparts throughout the world.

It is the worlda��s second largest exporter after China.

July represented the 3rd contraction for exports in the last 4 months and suggest a protracted slowdown in the third quarter.

Meanwhile, imports were 0.3% lower in July on a monthly basis a�� again confounding expectations of a 0.2% rise.

Germany, which is Europea��s largest economy, has been driving the recovery of the region but recent data has suggested the economy is faltering.

Last month, Destatis revealed the economy grew by just 0.1% in the April to June period a�� much less than the 0.5% expected by analysts and much slower than the 1.3% growth in the previous three months.

Furthermore, Markit recently announced Germany’s manufacturing and service sectors saw their weakest rate of growth for almost two years last month.

As a result of todaya��s figures, the country’s trade surplus narrowed to a��10.1 billion (A?8.9 billion) in July from a��11.5 billion the previous month, said the statistics office.

In the meantime, separate data showed France’s exports rose 0.3% in July, while imports also gained, by almost 3%.

Imports rose on the back of an increase in refined oil products, transportation equipment and computer products going into the country.

The countrya��s trade deficit widened to a��6.5 billion in July from a��5.4 billion in June.

Meanwhile, exports to the 27-member European Union were 3.9% higher at a��49.7 billion in July on an annual basis.

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