Friday, 7 November 2014

Germany Avoids Recession Fears on Trade Growth

In a big relief to Europe’s largest economy, German company’s defied sluggish global growth in September, selling more goods and services abroad than in any other month this year. The latest trade figures allay fears of Germany slipping into recession.

According to September trade figures published by the German statistics office Destatis on Friday, exports grew by 8.5 percent year-on-year, reaching a monthly volume of 102.5 billion euros ($126.8 billion). The total was the highest this year, surpassing the previous monthly export record set in July by about 1.4 billion euros.

German imports jumped 8.4 percent, compared with the same month a year ago, coming in at a total of 80.6 percent. According to Destatis data, the increase in September had offset a surprise slump by more than 5 percent in German trade in August.

Demand for German goods and services were higher in non-eurozone European countries with exports to those countries surging 13.8 percent over the year. Shipments to non-EU countries also grew significantly at a rate of 10.5 percent. By contrast, German exports to the crisis-hit eurozone were up by only 3.4 percent, the figures showed.

According to analysts, the strong September rebound in Germany trade appears set to shore up third-quarter growth in Europe's largest economy. After a robust first quarter in which output grew 0.8 percent, the German economy shrank 0.2 percent between April and June, raising fears of a recession.

According to latest factory figures released by the German Economics Ministry on Friday, industry output bounced back in September, rising 1.4 percent after contracting 3.1 percent in August.


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