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A surprise surge in imports outpaced rising German exports in February, data showed, cutting into the trade surplus in a sign of robust demand in Europe's largest economy. Germany's trade surplus narrowed to 11.4 billion euros, its lowest level since January 2010, as imports rose over four times more than expected, the adjusted data from the federal statistics office showed on Friday.
Economists in a Reuters poll had expected the surplus to rise to 12.5 billion euros, while imports, which grew 3.7 percent, had been seen rising only 0.8 percent. The figures may please some of Germany's European partners, such as France, who in the past have said they would like to see Berlin to do more to support domestic demand and drive sales of their own products.
In the two months to February, imports from countries in the European Union rose 21.2 percent in unadjusted terms compared with the same period in 2010. Germany has recovered faster than expected from its deepest recession since World War Two, and recent indicators show it is on a steady path of growth despite a debt crisis affecting some fellow eurozone member states.
The trade data also showed exports rose 2.7 percent, as opposed to the consensus forecast for 1.5 percent growth. In unadjusted terms, exports to EU countries rose 19.8 percent in January-February, compared to those months last year. During the same period, goods sent outside the bloc rose by 27.1 percent.

Copyright Reuters, 2011

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