IN a surprising turn of events, German exports experienced an unexpected rise in April, primarily driven by increased deliveries to China as the country reopened after the Covid crisis, reports Reuters
IN a surprising turn of events, German exports experienced an unexpected rise in April, primarily driven by increased deliveries to China as the country reopened after the Covid crisis, reports Reuters. However, analysts caution that this positive momentum may be short-lived.
According to the federal statistics office, German exports saw a 1.2 per cent increase compared to the previous month, defying expectations from a Reuters poll that predicted a decline of 2.5 per cent.
This growth in April follows a revised six per cent decline in exports reported in the previous month.
Hauck Aufhaeuser Lampe bank chief economist Alexander Krueger remarked that while the increase is notable, it falls far short of compensating for the significant downturn experienced in the previous month.
The office further noted that exports to China increased 10.1 per cent, while exports to the US rose 4.7 per cent, and exports to the EU experienced a 4.5 per cent uptick.
On the other hand, imports in April declined 1.7 per cent compared to March, which surpassed analysts' expectations of a one per cent decrease.
'This is a strong start to the second quarter for net exports, but we doubt it will be enough to provide a boost to GDP growth,' said Pantheon Macroeconomics' chief Eurozone economist Claus Vistesen.
'The upturn in net exports, which helped GDP growth in 4Q and 1Q, is now petering out.'
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