BERLIN: German exports to the United States and Britain surged in the first three quarters as the euro weakened, data showed on Thursday, helping companies in Europe’s largest economy to shrug off weaker demand from China and Russia.
Between January and September, the United States imported German goods worth 85.5 billion euros ($91.6 billion), a 20.9 percent rise, data from the Statistics Office compiled at Reuters’ request showed.
That leaves the United States on track to overtake France as Germany’s top export market this year for the first time in more than five decades.
Exports to France inched up 2.8 percent to 77.3 billion euros while sales to non-euro zone Britain jumped 14.2 percent to 67.6 billion in the same period.
“Export growth indeed benefits from the euro depreciation. This is why exports to the US rose substantially,” Commerzbank chief economist Joerg Kraemer said.
In addition to the weaker euro, which makes goods cheaper for customers outside the currency bloc, a recovery in some economies within the 19-country currency zone has also pushed up demand for “Made in Germany” goods. Exports to Spain soared 12.5 percent and sales to Italy went up 6.6 percent.
The two factors helped more than offset stalled demand from China, where exports from Germany edged down 2.6 percent to 53.8 billion euros after years of sharp gains that have benefited carmakers and engineering companies in particular.
Thursday’s data did not reflect any possible impact from the Volkswagen emissions scandal, which came to light in mid-September. Though the carmaker has many assembly lines outside Germany, parts for its vehicles are still manufactured at home.
German exports to Russia plunged 27.9 percent to 16.3 billion euros as collapsing oil prices dragged on the Russian economy and sanctions imposed over the Ukraine conflict weakened business further.
Overall, German exports jumped 7.0 percent between January and September with demand from EU countries outside the single-currency bloc up 10.0 percent.
“However, overall German export growth should slow down somewhat going forward,” Kraemer noted, pointing to weaker growth in emerging markets which was already reflected in a recent drop in manufacturing orders.
In addition, European Central Bank Governing Council member Ignazio Visco has warned the attacks in Paris could hurt the economic recovery in Europe – and therefore also weaken demand for German goods.”
