BERLIN: Biggest decline since 2009 recession a sign Germany feels pain of weakening global trade
German exports have slumped the most since the height of the 2009 recession in a sign that Europe’s largest economy is feeling the pain of weakening global trade.
Foreign sales declined 5.2 per cent in August from the previous month, the Federal Statistical Office said yesterday. That is the steepest drop since January 2009 and compares with a median estimate in a Bloomberg survey for a fall of 0.9 per cent. Imports slid 3.1 per cent.
In a further sign of a strain in the euro zone, French business confidence worsened unexpectedly.
Germany is grappling with a slowdown in China, its third-biggest trade partner, and other emerging markets that have been key destinations for its exports.
With factory orders from countries outside the 19-nation euro zone falling over 13 per cent in July and August combined, the focus is shifting to stronger domestic spending fuelled by pent-up investment demand and consumption.
