German Trade increases sharply

German imports have risen at their fastest rate since unification in 1990, outpacing a sharp rise in exports.

Imports rose by 14.8% in May compared with the previous month, while exports grew by 9.2%. Both figures were much higher than analysts had expected.

As a result, Germany’s trade surplus narrowed to 10.6bn euros ($13.4bn; £8.8bn) for the month.

Analysts said the data showed Europe’s biggest economy was growing strongly.

The reason, they said, was strong demand for German goods in Asia. A weakening euro, which makes the goods cheaper overseas, had also helped.

The euro has been hit in recent months by concerns about government debt levels and, more recently, by fears about the liquidity levels of banks.

BBC World News

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Dean Popplewell

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