GERMAN exports jumped higher in February, official data showed today, thanks to easing supply chains and strong demand from the United States and China.

Europe’s biggest economy exported goods worth €136.7 billion (RM657.5 billion), a 4% increase on the previous month, adjusted figures from federal statistics agency Destatis showed.

The United States was the top destination for “made in Germany” goods, with exports up 9.4% on January.

Shipments to China, Germany’s biggest trading partner, climbed by 10.2%.

Exports to fellow European Union countries increased by 2%.

Imports rose by 4.6% month-on-month, to €120.7 billion, notably due to a 6.7% increase in shipments from China.

Carolin Herweg, foreign trade expert at the German Chamber of Commerce and Industry (DIHK), said the February rise in exports offered “a small ray of hope” in uncertain times.

“Easing supply chain bottlenecks are providing positive impulses at the moment,” she said, while trade with key market China was “picking up again”.

The German economy has coped better than expected with the fallout from Russia’s war in Ukraine and the resulting energy crisis, in part thanks to government relief measures and mild winter weather.

But the export sector, a crucial driver of Germany’s economic growth, still faced headwinds, said Herweg.

“Weakening global demand, high inflation and increasing protectionism continue to weigh on Germany’s foreign trade,” she said.

The government expects the German economy to avoid a recession and grow by 0.2% this year. – AFP, April 4, 2023.