FRANKFURT (AFP) – German exports fell more sharply than expected in February, official data showed yesterday, the latest sign of weakness in Europe’s biggest economy.
Exports totalled EUR132.9 billion (USD144 billion), a two-per-cent decline from the previous month, when shipments had risen strongly, federal statistics agency Destatis said.
Analysts surveyed by financial data firm FactSet had expected a decline of 0.25 per cent.
It was more bad news for Europe’s traditional growth engine, which saw output shrink last year as exporters faced a fragile global economy, high interest rates and a manufacturing slowdown.Imports to Germany meanwhile rose 3.2 per cent in February month-on-month to EUR111.5 billion, with the country’s trade surplus coming in at EUR21.4 billion, down from January.
The decline in exports was driven by a 3.9-per-cent fall in shipments to fellow European Union countries, Destatis said, while exports to key trading partner China slipped by 0.6 per cent.
The United States remained the most popular destination for German exports, with deliveries to the world’s biggest economy rising 10.2 per cent.
While analysts expect the German economy to recover this year, the rebound looks likely to be slower than initially expected.
Last month, the German government slashed its 2024 growth forecast to just 0.2 per cent this year, warning that the economy was in “rough waters”.
