German trade surplus for 2002 broadens

Germany's trade surplus with the rest of the world widened in 2002 as exports grew and imports declined, but there were signs…

Germany's trade surplus with the rest of the world widened in 2002 as exports grew and imports declined, but there were signs that export growth was slowing.

Fears of an end to Germany's long-running export gains, fanned by lower order books last week, has prompted talk that the country could slip back into recession, although most analysts say it is premature to talk of negative growth.

Exports in December fell by a seasonally adjusted 2.1 per cent compared with November; imports fell 1.3 per cent, the Federal Statistics Office said in a statement today.

News of lower exports in December comes amid fears the current strength of the euro at around $1.07 is hitting German manufacturers as it makes their products expensive abroad.

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Last week, industry orders for December fell by a much worse than expected 4.1 per cent, largely due to a sharp drop in foreign orders.

Exports to other European Union countries rose 7.2 per cent in December; imports were up 10.7 per cent year-on-year. Exports outside the continent were up 3.6 per cent and imports up 2.2 per cent on the year.