ZCZC
BCN-04
GERMANY-INDICATOR-TRADE
German trade surplus shrinks amid global tensions
FRANKFURT AM MAIN, Dec 10, 2018 (BSS/AFP) – Germany’s trade surplus
narrowed slightly in October, official data showed Monday, as Europe’s export
powerhouse feels the sting from global trade tensions.
The surplus stood at 17.3 billion euros ($19.7 billion) in October, down
from 17.6 billion a month earlier, national statistics office Destatis said.
Imports over the period climbed 1.3 percent, outpacing a rise in exports of
0.7 percent.
The softening surplus comes as Germany’s export-oriented firms face
considerable exposure to the multiple trade battles launched by US President
Donald Trump.
Trump’s tariff war with China in particular has had knock-on effects,
disrupting international supply chains and causing uncertainty for investors.
After a weak third quarter, concerns are growing that Europe’s top economy
will struggle to pick up speed in the final months of the year.
But looking in detail at Germany’s latest trade figures, analyst Carsten
Brzeski of ING Diba bank said “not all is doom and gloom”.
He pointed out that October exports enjoyed a small rebound following a dip
in September.
Demand for “Made in Germany” goods in eurozone countries jumped nine
percent year-on-year, while the US remains Germany’s single most important
export destination despite the current headwinds.
Notably, trade with Britain has “lost importance” as German firms brace for
Brexit-induced disruptions to commerce, Brzeski said.
“Today’s data brings some relief but also shows that there is still a long
way to go before the traditional growth engine will be back at full
strength,” Brzeski added.
“The ongoing trade tensions and a general weakening of global manufacturing
demand has clearly left marks on the German export sector and the entire
economy.”
BSS/AFP/MR/ 1430 hrs