Germany’s exports continue to increase in June

Germany’s exports continue to increase in June

08-09-2010 08:01

German exports surged in June faster than previously thought. This is another evidence that the German economy is recovering. Exports rose by 3.8% in contrast to May and surged 29% in the yearly comparison, the Federal Statistical Office of Germany reported. Investors forecast that the strong data indicate that the German economy expanded at a faster pace in the second quarter of 2010. Strong demand from Asia and other emerging markets recently boosted German exports.

German exports

The uptrend in worldwide markets is supporting Germany’s exports. Especially rising demand from emerging economies are boosting German exports. Emerging markets profit from capital goods, stimulus measures and the comparatively weak rate of the Eurozone currency.

Trade surplus

Exports to non-eurozone nations rose by 37% from the corresponding period of the previous year, the data demonstrated. Exports to eurozone countries grew by 22%. Imports increased by 1.9% in contrast to May. Subsequently the German trade surplus grew, as the value of exports (€12.3) exceeds the value of imports.

Germany’s economy

Particularly Chinese demand for German goods boosted Germany’s exports. The rise in exports could signal that the German economy expands at a faster pace than expected. Germany’s economy grew by 0.2% in the first three months of 2010. Analysts estimate an even stronger growth rate for the second quarter of the year.

Eurozone debt crisis

China is the biggest exporter in the world, followed by Germany. The European currency has weakened considerably in recent months, favoring German exporters. The Euro was affected by the eurozone debt crisis previously this year, after which it improved. However, Europe’s Single Common Currency remains weaker than in 2009. European exports benefit from the improved competitiveness abroad.

Weak Eurozone currency

The German Chambers of Industry and Commerce commented: “Favorable developments in international markets stimulate German exporters. They benefit especially from the increasing demand from emerging economies, boosted by capital goods, stimulus measures and the comparatively weak rate of the Eurozone currency.”