German trade data lifts recovery confidence

12 March 2013

New trade data has lifted confidence in the state of the German economy.

Official figures compiled by the Federal Statistical Office have shown that imports to Europe's foremost financial powerhouse increased at a seasonally-adjusted rate of 3.3 per cent in January when compared to one month previously.

This performance has helped reduce the country's trade surplus, while also suggesting that domestic demand in Germany may be on the road to recovery.

Furthermore, increased levels of demand in key trading partners China and the US also meant the nation's exports went up by 1.4 per cent over the same timeframe.

Positive sentiment among experts in the German economy was severely dented recently when official data revealed that the country's gross domestic product (GDP) contracted by 0.6 per cent during the final quarter of 2012.

However, these latest trade figures - along with other indicators, such as improved business confidence - offer evidence that the nation is set to return to growth in 2013.

By Asim Shah

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