Berlin — Germany’s exports increased more than expected in April as Europe’s largest economy relied on trade between the United States and the euro area to recover from the initial effects of the war in Ukraine, government data Shown on Friday.
Exports increased 4.4% from the previous month, almost three times the 1.5% increase predicted by economists in Reuters polls, according to the Federal Bureau of Statistics.
March exports fell 3%.
Germany’s export-led economy has been boosted despite the collapse of trade with Russia in recent months due to severe sanctions imposed by the West to punish Moscow’s invasion of Ukraine.
Exports from Germany to Russia plummeted 60% in March and then fell 10% in April, according to the Statistics Bureau.
Imports also increased by 3.2% in March and then 3.1% more than expected in April, according to the Statistics Bureau.
Carsten Brzeski, chief economist at ING, called the April trade data a “pleasant surprise.”
“Germany’s exports have countered the new supply chain turmoil and the economic consequences of the war in Ukraine, at least for now,” he said.
However, the Chamber of Commerce (DIHK) warned that the rise could be short-lived.
“The export engine is tremendously large,” said Volker Terreie, head of foreign trade at DIHK, saying that April’s growth was actually solely due to falling export prices. Added.
The supply chain bottleneck hadn’t come yet as a result of China’s several weeks of blockade of COVID-19, but there was some delay, Treier said.
DIHK expects German exports to stagnate in 2022 as a whole.