German exports recovered in October but the pace of growth was weaker-than-expected, resulting in a fall in trade surplus.
Exports grew 0.5 percent in October from September, when shipments slid 1 percent, figures from Destatis revealed Friday. Nonetheless, the pace of growth was weaker than the expected 0.9 percent.
Likewise, imports advanced 1.3 percent, in contrast to September's 0.7 percent decline. Imports were forecast to grow 1.1 percent.
Consequently, the trade surplus fell to seasonally adjusted EUR 20.5 billion from EUR 21.1 billion in the previous month.
However, exports slid 4.1 percent from the previous year following a 0.6 percent rise. At the same time, imports dropped 2.2 percent versus a 1.6 percent fall in September.
The trade surplus declined to an unadjusted EUR 19.3 billion from EUR 24.2 billion in the previous month. The expected level was EUR 22 billion. In October 2015, the surplus was EUR 21.7 billion.
The current account of the balance of payments showed a surplus of EUR 18.4 billion in October compared to EUR 24.4 billion in September.
Looking ahead, however, the latest weakness of the Pound Sterling and possible protectionist policies under the new president in the U.S. do not bode well for the outlook for German exports, Carsten Brzeski, an ING Bank economist said.
Bundesbank today raised its growth outlook for this year to 1.8 percent from 1.7 percent and the forecast for next year to 1.8 percent from 1.4 percent.
The bank said exports are likely to continue to be held back by muted growth in global trade next year, but should slowly gather steam as the markets for German exports improve.
by RTT Staff Writer
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