FRANKFURT: German exports grew for the fourth straight month in August, official data showed on Thursday, but the pace is slowing as Europe’s largest economy settles into a new economic normality after the coronavirus lockdowns of the spring.
Exports grew 2.4 per cent month-on-month in August, after a 4.7 per cent jump in July, federal statistics agency Destatis said in seasonally adjusted figures.
Imports grew 5.8 per cent in August.
Germany shipped goods abroad worth 91.2 billion euros ($107.3 billion) and imported goods worth 78.5 billion euros.
The fourth consecutive monthly rise follows a steep plunge in activity in March and April when coronavirus lockdowns brought factories and businesses to a standstill.
Exports remain 10.2 per cent below the same month a year earlier — and 9.9 per cent below pre-crisis levels in February — while imports were down 7.9 per cent on August 2019.
The German economy has shown signs of a strong rebound in the third quarter, mainly led by domestic demand as the country began easing virus restrictions in May.
Exports, a key driver of German growth, have played catch-up since then but remain highly dependent on how other countries are coping with the pandemic.
Experts say the momentum of Germany’s recovery appears to be slowing as countries around the world grapple with a resurgence in Covid-19 cases.
While German exports to China fell by only 1.1 per cent compared with August 2019, exports to the United States, which continues to be more affected by the pandemic, fell 21.1 per cent.
“New restrictions on the back of increasing infections in many countries will also leave their marks on German exports... Clearly there are more headwinds than tailwinds for the export sector,” ING economist Carsten Brzeski said.
Concerns are also mounting about Germany’s own spike in cases. — AFP
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