German trade surplus beats forecasts in April

Germany’s trade surplus decreased slightly in April when compared to the prior month, with both its sales abroad and imports falling, but nonetheless beat economists' forecasts.

Exports fell 2.5% month-on-month to reach €104.3bn in April and were flat in calendar and seasonally adjusted terms, according to the country’s statistical office.

Imports declined by 2.7% over the month and dipped by just a slight 0.2% upon calendar and seasonal adjustment.

As a result, the trade surplus slipped from €26.2bn in March to €25.6bn in April (consensus: €22.8bn).

However, April’s trade surplus was well above the €21.8bn seen in the same month of a year ago, thanks to a 3.8% year-over-year jump in exports, while imports dipped by 0.2%.

Year-to-date, exports grew by 6.5%.

"The key driver of the rise was exports to non-EZ EU economies, the U.K., highlighting that Germany, and the rest of the euro area, has a distinct interest in the U.K. staying within the EU," said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.

The current account of the balance of payments was in surplus to the tune of €28.8bn, up from the €21.5bn seen in the same month of a year ago.

Exports to the European Union increased by 7.3% year-on-year to reach €61.3bn, while imports declined by 2.0% to €52.9bn.