BERLIN: Germany's trade surplus shrank in April to 17 billion euros ($19 billion) following weaker demand within the European Union, official data showed Friday, adding to production woes in Europe's largest economy.
Exports fell 3.7 percent month-on-month, to 109.7 billion euros, while imports shed 1.3 percent to 91.7 billion, federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects.
Amid the falling demand from abroad, Europe's biggest export power saw its surplus narrow in April from 20 billion the month before.
"Industry had a severe backfire in April, which is also reflected in very weak exports," said economist Dr Klaus Borger from the KfW banking group.
"For our economy" to start "this year with a black eye" means the slowdown could soon have a "noticeable impact on the labour market," he added.
The weaker export data were coupled with plunging industrial production data for April.
Destatis had earlier reported that output at producer firms fell 1.9 percent compared with March -- the first drop since January.
In total, European Union nations bought 63.8 billion euros of goods from Germany during April, down 3.5 percent compared to the same period in 2018, while exports outside the bloc were up year-on-year to 45.8 billion euros.
Foreign trade is crucial for the German economy and is closely monitored as the commerce climate deteriorates amid an escalating trade conflict between the United States and China.
EU nations are not immune to tariff barriers imposed by the US administration during uncertain times for the global economy.
"The German export sector continues to suffer from trade conflicts," added ING analyst Carsten Brzeski, adding that "a single month is clearly not representative of the German economy as a whole."
Comments
Comments are closed.