German exports tick higher in July

FRANKFURT AM MAIN: German exports in July continued to recover from the virus-related slump but still lagged heavily behind pre-pandemic numbers, official data showed Tuesday.

Exports grew 4.7 percent month-on-month in July, a slower acceleration than the 14.9 percent increase in June, German statistics agency Destatis said in seasonally adjusted figures.

Europe's top economy shipped goods abroad worth 102.3 billion euros ($102.9 billion) and imported goods worth 83.1 billion euros.

The July data marked the third month-on-month jump in German exports following steep plunges in March and April when coronavirus lockdowns battered trade and disrupted supply chains around the world.

Underlining the tough recovery ahead, exports were still 11.0 percent lower in July than in the same month a year earlier while imports were down 11.3 percent.

Although the latest data keep German hopes of a "V-shaped" recovery alive, "we should not get carried away by these numbers", said ING bank economist Carsten Brzeski.

"The German export sector is still suffering from structural challenges including trade tensions, Brexit and global supply chain disruptions, as well as difficulties among its main trading partners to cope with the virus."

German exports to China, which is further along in battling the Covid-19 pandemic than most countries, fell by just 0.1 percent year-on-year in July, the data showed.

But exports to the hard-hit United States plummeted by 17.0 percent.

Economy Minister Peter Altmaier said last week that the German economy was in the midst of a V-shaped rebound, despite the threat of further spikes in coronavirus infections across Germany and Europe.