Geopolitical problems impact on German exports

German exports posted their biggest fall in nearly a year, in March, and imports also dipped as the crisis in Ukraine and a slowdown in China weighed, narrowing the country’s trade surplus and confirming trade was a drag on growth at the start of 2014.

Figures from Germany’s Federal Statistics Office showed seasonally -adjusted exports slipped 1.8% on the month, their second consecutive fall, and imports dipped 0.9%, pushing the trade surplus down to €14.8bn, from €15.8bn in February. Economists had expected a March surplus of €16.6bn.

“As already reflected in other industrial data, March saw a stronger real economic impact from the Ukrainian crisis and the Chinese slowdown than confidence indicators had suggested,” said ING economist Carsten Brzeski.