German exports and imports surge hailed as good news for Europe

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German exports and imports surge hailed as good news for Europe

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The latest trade figures show Germany – Europe’s largest economy -started the year on a strong footing and is on track to robust growth.

Exports and imports surged in January.

Imports jumped by a very strong 4.1 percent, bouncing back from December’s 1.4 fall.

Exports rose 2.2 percent after a 0.9 percent decline in December.

Interestingly, year-on-year, exports to the rest of the eurozone rose 3.2 percent, but the biggest surge – 9.1 percent – was shipments to European countries outside the currency bloc.

Only shipments to countries beyond Europe fell.

James Ashley, senior European Economist with RBC Capital Markets said: “You want to see stronger German consumption, on the flip-side of that you want to see stronger exports and investment in the likes of say Spain. But for Europe outside the euro area, I think it’s wholly positive that Germany is seeing strong export growth.”

Indicating solid German demand, imports into the country were strongest from the eurozone which should helping the region’s recovery from recession.

Confidence among German consumers, investors and businesses has hit multi-year highs in recent months.