Germany's trade surplus hits 12-month low in Jan, sharp rise in imports outpace exports

Germany’s trade surplus fell to a 12-month low in January on the back of a sharp rise in imports at the start of the year. The Federal Statistical Office 'Destatis' reported Friday that Germany’s trade balance fell to €14.8bn in January compared to €18.7bn in December. The drop was far steeper than the €18bn forecast by economists ahead of the release.

A sharp rise in German imports which soared more than expected in January, outperforming an also surprisingly strong rise in exports was seen as the major drag, data showed on Friday. The Federal Statistical Office reported Friday that exports were up 2.7 percent in January over December, while imports increased 3 percent, according to figures adjusted for seasonal and calendar variations.

Still on a year on year measure, the surplus still rose 12 percent compared to January 2016, with exports climbing 12 percent, said Destatis. The United States has put Germany on a new monitoring list together with other countries such as China and Japan, mostly due to their large surpluses.

The country’s current account balance also shrunk more than expected, falling by nearly a half from €24.8bn to €12.8bn. Overall, the current account surplus is expected to hit an all-time record of 8 percent at the end of 2016.