German trade surplus widens as exports rally

German exports rallied in January, official data showed on Wednesday, reversing the sharp falls seen at the end of last year.

According to Destatis, the Federal Statistical Office, exports jumped 6.3% on the previous month, or 0.3% on the same month a year earlier, to an 11-month high of €135.6bn.

In December, exports slid 4.6%.

Imports also rose, up 3.6% on the previous month to €108bn, although that only partially reversed December’s 6.7% slump. Year-on-year, imports fell by 8.3%.

As a result, the adjusted trade surplus soared to a record €27.5bn from a revised €23.3bn in December and above consensus for €21.0bn.

Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said: "Overall, it looks like another quarterly increase in Germany’s nominal surplus, but we need to see February data to get a clearer picture, especially given the wild volatility in recent months. In additional, survey data point to downside risks for exports."

Exports to other European Union countries rose by 8.9% on the month, while imports jumped 10.8%.

Imports from non-EU countries fell by 4.5%, led by China and the US, while exports improved by 3.1%.

Germany is Europe’s largest economy. Heavily reliant on manufacturing, it has been hit hard by surging energy costs in the wake of Russia’s invasion of Ukraine, record inflation, higher interest rates and sluggish global demand.