Import and export blow for Germany

Data from the Federal Statistics Office yesterday showed imports sliding 3.8 per cent, undercutting even the lowest estimate in a Reuters poll of economists. The consensus forecast had been for imports to rise 0.5 per cent.

Exports, which had been expected to remain unchanged, dropped 1.5 per cent, underscoring how weakness in Germany’s key European partners is affecting demand for its goods. Exports have fallen in three of the last six months.

“The hope was that German domestic demand would support the economy, not just its own but also that of the rest of the eurozone, and especially crisis countries, via imports,” said Christian Schulz at Berenberg Bank.

“But the German economy is not yet playing the role that it could play in terms of European rebalancing,” said Mr Schulz. “Domestic demand still seems to suffer from lack of confidence due to certain uncertainties surrounding the euro crisis.”

The seasonally-adjusted trade surplus widened to 17.1 billion euros from 15.6 billion in January. The consensus forecast was for it to narrow to 15.0 billion euros.

Germany’s economy, long resilient to the eurozone crisis, slowed in 2012 and output shrank by 0.6 per cent in the final quarter. But economists expect it to skirt recession and to have returned to weak growth in the first three months of 2013.