RTTNews - German exports in June registered the biggest monthly growth since September 2006 on rising global demand after business surveys revealed optimism in economic activity.
According to a Destatis report, exports jumped 7% month-on-month in June, much larger than the revised 0.2% rise seen in May and 0.9% expected by economists. Meanwhile, imports grew 6.8%, reversing May's revised 1.9% drop. Economists were looking for a monthly growth of 0.7% in imports.
Driven by higher exports, the trade surplus increased to EUR 12.2 billion in June from EUR 9.5 billion in May. This was much larger than the EUR 10.6 billion surplus expected by economists. However, the June surplus stood below EUR 20.1 billion recorded in the same period last year as the annual decline in exports outpaced imports.
On a yearly basis, exports plunged 22.3% to EUR 68.5 billion in June and imports declined 17.2% to EUR 56.3 billion. In May, exports and imports were down 24.6% and 22.4%, respectively.
According to provisional results of the Deutsche Bundesbank, the current account surplus surged to EUR 13.3 billion in June compared to EUR 4.2 billion last month. A year ago, the current account showed a surplus of EUR 19.5 billion.
In June 2009, Germany exported commodities worth EUR 43.8 billion to the member states of the European Union, while it received commodities to the value of EUR 37.8 billion from those countries. Accordingly, dispatches and imports from the EU nations decreased 22.1% and 15.8%, respectively from the prior year.
Within the total exports to EU member states, exports to the Eurozone nations declined 20.1% annually to EUR 30.3 billion and receipts from those countries dropped 16% to EUR 26.6 billion.
Exports to countries outside the European Union stood at EUR 24.7 billion in June, while imports from those countries amounted to EUR 18.5 billion. Annually, exports to third countries slipped 22.4% and imports from those countries by 19.8%.
The Federal Ministry of Economics and Technology said in a report yesterday that factory orders grew 4.5% in June from May on a strong 8.3% increase in foreign demand. The latest growth in orders was the biggest in two years. Orders from other Eurozone economies jumped 13.2% and those from countries outside the region climbed 4.8%.
The government still forecasts a 6% contraction for 2009. The Paris-based Organization for Economic Co-operation and Development also estimate an annual contraction of around 6% this year in Germany.
Earlier this week, the European Commission had approved the German short-term export-credit insurance scheme, a measure to limit the adverse impact of the current financial crisis on export firms. The commission authorized the scheme until December 31, 2010. To avail the facility, a significant proportion of the risk should be retained by the exporter.
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