BERLIN: German trade activity picked up in August as exports outpaced imports, widening the surplus and adding to evidence that Europe’s biggest economy performed strongly in the third quarter. Seasonally adjusted exports rose by 3.1 percent on the month while imports were 1.2 percent up, data published on Tuesday showed. It was the strongest export growth reading in 12 months, easing concerns that a stronger euro might dent sales of German goods and services abroad.
The figures suggest that the German economy, the euro zone’s growth engine, is set for a solid expansion in the third quarter despite uncertainties about the make-up of the next government following national elections last month. “While financial markets and the ECB have been discussing the risks of a stronger euro, the country which often claims to be export world champion is still enjoying a strong export recovery,” Carsten Brzeski of ING Diba wrote in a note. “Despite the summer lull, the year 2017 should be the best year for German exports since 2010.” Both hard economic data and sentiment surveys have pointed to strong German growth in the July-September period and a solid expansion for the whole of 2017.
