German exports post surprise rise as China trade sizzles

German exports unexpectedly rose in January, buoyed by robust trade with China in a positive start to the year for manufacturers in Europe's largest economy. Seasonally adjusted exports increased 1.4% on the month after an upwardly revised increase of 0.4% in December, the Federal Statistics Office said on Tuesday.

Reuters | Berlin | Updated: 09-03-2021 13:48 IST | Created: 09-03-2021 13:38 IST
German exports post surprise rise as China trade sizzles
Representative Image Image Credit: Pixabay

German exports unexpectedly rose in January, buoyed by robust trade with China in a positive start to the year for manufacturers in Europe's largest economy.

Seasonally adjusted exports increased 1.4% on the month after an upwardly revised increase of 0.4% in December, the Federal Statistics Office said on Tuesday. Imports fell 4.7% after showing no change in the prior month, an upward revision. A Reuters poll had pointed to a 1.2% drop in exports and a 0.5% fall in imports. January's 1.4% increase in exports far surpassed even the most optimistic forecast.

The trade surplus grew to 22.2 billion euros. In the year, exports to China rose by 3.1%. Exports to other European Union countries fell 6.0% on the year, those to the United Kingdom dropped 29% and those to the United States decreased by 6.2%. Thomas Gitzel, the chief economist at VP Bank, described the overall rise in exports as "an extremely positive surprise" and expected further growth.

"Net exports will thus be able to partially offset losses in private consumption in the economy as a whole - but not completely. On balance, the German economy will shrink in the first quarter," he said. Most economists expect the economy to shrink in the first three months of the year, before rebounding in the second.

On Monday, official data showed industrial output fell in January as winter weather slowed construction, and semiconductor shortages held back production in the car industry. However, German automotive parts maker Continental AG said earlier on Tuesday it expected 2021 sales and profit margin to grow despite expected additional costs due to chip shortages.

Recent German data has painted a picture of a two-speed economy in which export-oriented manufacturers are doing well while domestically driven services are suffering under lockdown measures imposed in early November and tightened in mid-December to contain the second wave of coronavirus infections.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

Americas not behaving as if in midst of worsening COVID-19 crisis -regional health official warns

The Americas are not behaving like a region experiencing an ever-graver outbreak of COVID-19, the director of the Pan American Health Organization PAHO warned on Wednesday. This rise in infections is alarming but not surprising given relaxe...

East African joins Nairobi EU-Africa Green Talk to share investment best practice

The Secretary-General of the East African Community today joined more than 150 African business leaders, financial experts and diplomats in the Nairobi EU-Africa Green Talk to share investment best practice and outline how to mobilise priva...

Cop who shot Black man after traffic stop arrested, to face manslaughter charge

Minnesota authorities arrested the police officer who fatally shot a Black man during a scuffle that followed a routine traffic stop and said they would charge her with second-degree manslaughter later on Wednesday.Kim Potter, a 26-year vet...

Over 500 fall ill in Delhi after consuming food prepared with buckwheat flour

Over 500 people who had eaten food prepared with buckwheat kuttu flour were taken ill in different parts of east Delhi, officials said on Wednesday.Prima facie, it appears to be a case of food adulteration or sale of spoiled flour, they sai...

Give Feedback