German Exports Slump Most Since 2009 Recession in Sign of Risks
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Foreign sales fall 5.2% in August versus estimated 0.9% drop
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Imports down 3.1%, trade balance shrinks to EU15.3 billion
German exports slumped the most since the height of the 2009 recession in a sign that Europe’s largest economy is vulnerable to risks from weakening global trade.
Foreign sales declined 5.2 percent in August from the previous month, the Federal Statistics Office in Wiesbaden said on Thursday. That’s the steepest since January 2009. Economists predicted a drop of 0.9 percent. Imports fell 3.1 percent. The trade surplus shrank to 15.3 billion euros ($17.2 billion) from 25 billion euros in July, according to the report.
Germany is grappling with a slowdown in China and other emerging markets, which have been key destinations for its exports. With factory orders from countries outside the 19-nation euro region down more than 13 percent in July and August combined, the focus is shifting to strengthening domestic spending fueled by pent-up investment demand and consumption.
The decline is the latest sign that prospects for the economy are deteriorating. Germany’s leading economic institutes are set to lower their growth forecast for 2015 to about 1.8 percent from a previous estimate of 2.1 percent, Reuters reported on Wednesday.
The European Central Bank will publish an account of its Sept. 2-3 monetary-policy meeting later on Thursday. Investors are looking for signs that policy makers are getting closer to increasing stimulus.
Source: Bloomberg – German Exports Slump Most Since 2009 Recession in Sign of Risks
