German exports rose better than expected in August, recording its strongest growth of over six years. The data dissipate fears that Europe’s biggest economy headed to growth retardation. The German exports grew by 5.4% in August, after adjustment for seasonal factors, which is the strongest rise since May 2010. Meanwhile the imports increased by 3.0%.
The data show that exports, which recently weakened and lost its traditional role as the main engine of growth in Germany will contribute to the expected expansion of the economy in the third quarter. The analysts explain export growth to improving economic conditions in China, but warned that global trade remains weak and risks are high, especially associated with any solid exit of Britain from the European Union.
Weak data in July raised concerns that the German economy will slow in the third quarter. These fears, however, were largely limited by positive data in recent weeks. The industrial production grew more strongly than expected in August, recording its strongest growth since January.
The government raised its forecast for the country’s economic growth this year to 1.8% from 1.7%, which would be the strongest growth than half a decade.
The growth in exports increased the seasonally adjusted trade surplus to 22.2 billion EUR from 19.4 billion EUR in July.
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