“German exports fell more than economists forecast in February as the euro area, the country’s biggest trading partner, struggled to emerge from recession.
Exports, adjusted for working days and seasonal changes, dropped 1.5 percent from January, when they gained 1.3 percent, the Federal Statistics Office in Wiesbaden said today. Economists forecast a 0.3 percent decline, according to the median of 15 estimates in aBloomberg News survey. Imports fell 3.8 percent.
Germany’s economy, Europe’s largest, probably returned to growth in the first quarter after contracting 0.6 percent in the final three months of last year. Still, renewed financial-market turmoil after inconclusive elections in Italy and a bailout in Cyprus may delay a recovery in the 17-nation euro area.
“The export-driven manufacturing sector, which accounts for roughly a quarter of German gross domestic product, has not fully turned around yet,” said Christian Schulz, senior European economist at Berenberg Bank in London. “While much of theeuro zone remains in serious recession, Germany will have to rely on domestic demand and exports to stronger economies such as China and the U.S. for a growth rebound.”
The trade surplus increased to 16.8 billion euros ($21.9 billion) from 13.6 billion euros in January. The surplus in the current account, a measure of all trade including services, was 16 billion euros, up from 9.7 billion euros….”
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