German exports to outside of the European Union increased by 6.4%, and demand improved in the US. Economists had forecast shipments to grow 1 percent reversing a 1.1 percent fall in June. There was also a dramatic contraction in imports, which fell to 3.02 billion euros from 4.5 billion euros a year earlier, or 32 percent.
Similarly, imports advanced by a faster-than-expected 2.2 percent in July after declining 0.8 percent in June. The decline in both exports and imports saw the trade deficit shrink in the year’s first seven months by 19.5 percent from 2014 to 9.9 billion euros against 12.4 billion in January-July last year. Economists polled by Reuters had been expecting shipments overseas to rise by 0.7% and imports to increase by 0.5%.
FRANKFURT-Rising exports propelled Germany’s trade balance to its highest surplus on record in July, a sign that foreign demand is underpinning economic growth in Europe’s largest economy.
The unadjusted surplus hit 25 billion euros, a new record.
The current account surplus came in at Euro 23.4 billion in July compared to a Euro 20.6 billion surplus seen in the same period of past year.
German exports will not continue to grow at this pace as a result, the added.
Economist said that strong trade with the U.S., Britain and the whole euro zone was more than offsetting weakness in emerging markets and China.
