Germany posts record 2004 trade surplus

The German trade surplus surged nearly 20 per cent to a record high of €155.6 billion in 2004.

The German trade surplus surged nearly 20 per cent to a record high of €155.6 billion in 2004.

Europe's largest economy exported a record €731 billion in goods last year, a rise of 10 per cent over 2003, preliminary data from the Federal Statistics Office showed today.

The figures come despite a sharp increase in the euro currency to all-time highs.

Exports account for just under a third of the economy. "It looks like Germany did enough to claim the title of export world champion again," said Mr Dirk Mohr from the Federal Statistics Office.

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Calculated in dollars, Germany was the world's biggest exporter in 2003. After falling off record highs hit early in the year, the euro rose steadily during the last quarter of 2004 to top $1.36 at the end of December.

A strong euro makes goods produced in Germany more expensive in key markets outside the euro zone.

Despite the strong currency, the 2004 trade surplus rose 19.8 per cent from its previous record of €129.9 billion set in 2003.

Goods worth almost €470 billion were exported to other countries of the European Union, an annual gain of 9.8 per cent. This figure included trade - backdated to the start of the year - with the 10 mostly eastern and central European states that joined the EU on May 1st, 2004.

In total, Germany imported goods worth €575.4 billion, a rise of 7.7 per cent from the previous year.