German Exports Fall Most In 4 Months

germanytrade aug27

Adding to fears of recession, Germany's exports declined the most in four months, while imports recovered at a faster than expected pace, data from Destatis revealed on Thursday.

Exports fell by more-than-expected 1.8 percent month-on-month in August, reversing a 0.8 percent rise in July. Exports were forecast to fall 1 percent.

Meanwhile, imports rose 0.5 percent after falling 2.4 percent a month ago. Economists had forecast a 0.3 percent rise.

As a result, the trade surplus fell to a seasonally adjusted EUR 18.1 billion from EUR 20.5 billion in July.

On a yearly basis, exports declined by unadjusted 3.9 percent in contrast to a 3.8 percent rise in July. Likewise, imports fell 3.1 percent after dropping 1 percent in the previous month.

The trade surplus totaled an unadjusted EUR 16.2 billion versus EUR 17.6 billion surplus last year.

Further, data showed that the current account surplus rose to EUR 16.9 billion from EUR 15.2 billion in the same period last year.

Another report from Destatis showed that business insolvencies totaled 1,644 in July, up 0.2 percent from last year. The highest number of insolvencies was reported in construction, followed by wholesale and retail trade.

Germany GDP contracted 0.1 percent in the second quarter and the economy is widely expected to shrink again pushing it into recession. In September, Bundesbank said a technical recession in the third quarter is not a cause for concern.

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