German exports rise fourth month in a row in November

BERLIN: German exports rose for the fourth consecutive month in November as trade picked up especially to European Union countries outside the euro, in a sign Europe's largest economy is benefiting from an early global upturn. Data from the Federal Statistics Office on Wednesday showed seasonally-adjusted exports rose by 0.3 percent on the month, largely in line with the consensus forecast in a Reuters poll for a 0.35 percent increase. Imports dropped by 1.1 percent in November, missing the consensus estimate for a 0.3 percent increase.

"Even if November is a bit weaker than the strong October - especially on the imports side - the data shows that the fourth quarter is picking up because of a German and global recovery," said Christian Schulz, senior economist at Berenberg Bank.

"This year's data shows that less and less of Germany's trade surplus is coming from the euro zone. Germany has made its contribution to the reduction of imbalances in the euro zone," he added. Germany has come under international pressure for relying too heavily on foreign markets, a criticism that could play a role again when US Treasury Secretary Jack Lew meets German Finance Minister Wolfgang Schaeuble in Berlin on Wednesday.

The seasonally-adjusted trade surplus widened to 17.8 billion euros from a revised 16.7 billion in October, just below a forecast 18 billion euros.

The current account surplus rose to 21.6 billion euros from 18.8 billion in October. Strong retail sales and data showing a solid labour market are also likely to lend weight to Schaeuble's argument that Germany is not living off the weakness of its euro zone peers and that export growth is driven increasingly by countries outside of Europe.

While exports to non-EU countries stagnated in November compared to a year ago, those to EU countries outside the euro rose by 4.9 percent. Exports to the currency union ticked up by 0.1 percent.

Germany also argues it has more than halved its current account surplus with the euro zone as a share of gross domestic product since 2007 and that a surplus should be treated differently to a deficit. Trade is expected to subtract from rather than contribute to economic growth in 2013, while domestic demand, albeit still weak, will likely drive a modest expansion.