Germany's exports surged far more than expected in March, with a double-digit annual expansion signalling Europe's largest economy is likely to have grown firmly in the first quarter of the year.
Seasonally adjusted exports gained 7.3 per cent from a month earlier, beating the 0.8 per cent increase forecast in a poll of economists. In unadjusted terms, exports grew 15.8 per cent year-on-year and imports by 16.9 per cent.
"Germany is on the verge of a 'golden decade'," said Christian Schulz of Berenberg Bank. "The competitive advantages that Germany started building up for itself ... are now paying dividends."
Exports amounted to €98.3 billion while imports grew to €79.4 billion.
The trade surplus grew to €15.2 billion, according to data from the Federal Statistics Office, compared with a poll of economists of €11.8 billion.
Germany has staged a strong recovery from its deepest recession since World War Two, and the economy looks to be growing steadily despite a debt crisis affecting some fellow euro zone member states.
But recent data have suggested that the rebound is likely past its peak. German manufacturing orders unexpectedly fell in March, data showed last week, reflecting an unusually low number of large orders.
"The latest batch of economic data for Europe's biggest economy signal another smashing growth performance in the first quarter of the year," said Carsten Brzeski at ING. "At the same time, however, the underlying trend, also shows that the first quarter should mark the end of the V-shaped recovery. The economy is currently taking it down a gear, cruising along smoothly."
German companies are still feeling the pickup. On Friday, chemicals giant BASF beat estimates for sales and earnings as demand from carmakers for coatings and catalytic converters picked up and recent takeover started to pay off.
Economists pointed to risks to German growth, such as high raw materials prices and the strength of the euro. Gross domestic product numbers are due on Friday and are expected to show Germany's economy expanded by 0.9 per cent in the first quarter.
Reuters
