Exports from Europe’s largest economy Germany enjoyed an unexpected rebound in July, official data showed Monday, making for a bright spot in the data amid signs of a looming recession, reports agencies.
Some 115.2 billion euros ($127 billion) of German goods were sold abroad in July, up 0.7 percent month-on-month and 3.8 percent year-on-year, federal statistics authority Destatis said in seasonally-adjusted figures, agency reports. Analysts surveyed by Factset had predicted a 0.8 percent month-on-month fall.
With imports down 1.5 percent month-on-month, at 93.7 billion euros, Germany’s trade surplus reached 21.4 billion euros — up from 18.1 billion in June. A geographical breakdown showed trade both with countries that share the euro single currency and the wider European Union shrank in July, while export growth came from business with non-EU nations climbed by 9.8 percent.
After years of booking massive annual trade surpluses, Germany’s export- oriented economy has made it a target for criticism from international organisations like the International Monetary Fund and especially US President Donald Trump. But an advantage during global upturns has become an Achilles’ heel as growth ebbs, with Trump’s trade war with China, weakness in emerging markets and the threat of no-deal Brexit weighing on confidence and activity.
After German GDP shrank in the second quarter, many economists now expect a “technical” recession — or two successive quarters of negative growth.