German exports dive beyond forecasts in February

German exports decline: German exports experienced a more substantial decline than anticipated in February, with a notable drop in exports to European Union nations, according to data released by the Federal Statistics Office on Monday.

In February, exports decreased by 2 per cent compared to the previous month, falling below the projected 0.5 per cent decline in a Reuters survey. Meanwhile, imports saw a 3.2 per cent increase during the same period, as reported by the statistics office.

Surplus shrinks in February

The foreign trade balance indicated a surplus of 21.4 billion euros ($23.17 billion) in February, a decrease from January's 27.6 billion euros and February 2023's 16.9 billion euros.

Exports to EU countries notably declined by 3.9 per cent month-on-month, while exports to non-EU countries rose by 0.4 per cent.

US exports surge, China declines

Regarding specific trade partners, exports to the United States surged by 10.2 per cent compared to January, while exports to China experienced a slight decrease of 0.6 per cent.

Carsten Brzeski, ING's global head of macro, commented on the situation, highlighting the shifts in global trade and geopolitical tensions affecting German trade.

(With Reuters Inputs)