German exports surged in August due to strong demand from the eurozone, in a sign that the region’s economic recovery has continued to broaden.
The Federal Statistical Office of Germany said Tuesday that total goods exports in August rose 3.1% from July, taking account of seasonal swings and calendar effects. Exports leapt 7.2% from August 2016, led by a 10.6% increase in exports to eurozone countries.
The figures underpin expectations of robust economic growth in the currency bloc. They also highlight German exporters’ resilience in the wake of a stronger euro, which has appreciated steadily against the dollar since the start of the year.
Illustrating this point, German exports to countries outside the European Union rose 7.1% in the eight months through August from the same period in 2016.
Domestic demand in Germany was also robust, adding to evidence of strengthening investment in Europe’s largest economy. August imports rose 1.2% on month and 8.5% on year, the statistics body said.
As a consequence, the country’s adjusted trade surplus–the balance of exports and imports–rose to 21.6 billion euros ($25.4 million) in August from EUR19.3 billion in July, beating a consensus forecast of EUR20 billion.
“The biggest risks for the German economy and the export sector come from the outside,” said Carsten Brzeski, an economist at ING. “Geopolitical risks, a slowdown of the U.S. or U.K. economy and a cooling in pro-European sentiment could dent the strong growth momentum.”
Source: Dow Jones