German exports post biggest drop since 2015

German exports plunged unexpectedly in February, posting their biggest monthly drop in 2-1/2 years and narrowing the trade surplus, data showed on Monday.

Seasonally adjusted exports of the fourth largest economic country of the world fell by 3.2 per cent on the month, the steepest decline since August 2015, data from the Federal Statistics Office showed.

Imports of the largest national economy in Europe dropped 1.3 per cent, reports Reuters.

A Reuters poll had pointed to exports edging up by 0.2 percent on the month and imports rising by 0.3 percent.

HSBC Trinkhaus analyst Lothar Hessler said, “As it looks, we have surpassed the top of the economic upswing.”

The stronger euro was probably to blame for the weak export figures, he said adding that the economy will continue to grow, but with less momentum.

The seasonally adjusted trade surplus narrowed to 19.2 billion euros from 21.5 billion euros in January, the lowest since January 2017. The Reuters consensus forecast was for 21.4 billion euros.

Germany’s wider current account surplus, which measures the flow of goods, services and investments, edged up to 20.7 billion euros from 20.3 billion euros in January, unadjusted data showed.

Official data last week showed German industrial output fell by the most in more than two years in February.