German exports lose momentum in February

FRANKFURT, Germany — German exports fell more sharply than expected in February, official data showed Monday, the latest sign of weakness in Europe’s biggest economy.

Exports totaled 132.9 billion euros ($144 billion), a 2-percent decline from the previous month, when shipments had risen strongly, federal statistics agency Destatis said.

Analysts surveyed by financial data firm FactSet had expected a decline of 0.25 percent.

READ: German exports fall more than expected in December

It was more bad news for Europe’s traditional growth engine, which saw output shrink last year as exporters faced a fragile global economy, high interest rates and a manufacturing slowdown.

Decline in exports to EU countries

Imports to Germany meanwhile rose 3.2 percent in February month-on-month to 111.5 billion euros, with the country’s trade surplus coming in at 21.4 billion euros, down from January.

The decline in exports was driven by a 3.9 percent fall in shipments to fellow European Union countries, Destatis said, while exports to key trading partner China slipped by 0.6 percent.

READ: German exports to US, China fell sharply in December

The United States remained the most popular destination for German exports, with deliveries to the world’s biggest economy rising 10.2 percent.

While analysts expect the German economy to recover this year, the rebound looks likely to be slower than initially expected.

Last month, the German government slashed its 2024 growth forecast to just 0.2 percent this year, warning that the economy was in “rough waters”.

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