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German exports top €1 trillion for 1st time in 2011; December figures indicate tougher times

By: Geir Moulson, The Associated Press

Posted: 02/7/2012 4:58 AM | Comments: 0 (including replies) | Last Modified: 02/8/2012 4:32 AM

FILE - The June 1, 2011 file photo shows Thomas Mehlhose checking a car at the final stage of the assembly line for the premium car Phaeton in the so called transparent factory of German carmaker Volkswagen in Dresden, eastern Germany. German export increased by 11.4 percent in 2011 to euro 1,060.1 billion (US$ 1,406 billion) as the Federal Statistical Office (Destatis) reported Wednesday, Feb 8, 2012 on the basis of provisional data. (AP Photo/Jens Meyer, file)

BERLIN - German exports climbed 11.4 per cent last year to top the €1 trillion ($1.3 trillion) mark for the first time, official figures showed Wednesday, though a decline in December underlined the likelihood of slower growth ahead as Europe grapples with its debt crisis.

Imports rose by an even stronger 13.2 per cent last year, also hitting a new record.

Exports have long been a mainstay of Germany's economic strength though they have been supplemented recently by stronger domestic demand — and export growth is expected to slow this year as a result of the debt problems afflicting the 17-nation eurozone and slower growth worldwide.

Germany, Europe's biggest economy and the world's fourth-largest, exported goods and services worth €1.06 trillion ($1.4 trillion) last year, up from €952 billion in 2010, the Federal Statistical Office said.

Germany lost its crown as the world's biggest exporter in 2009 to China, which has powered further ahead since. China's exports rose 20.3 per cent last year to $1.9 trillion.

German exports to countries outside the 27-nation European Union showed the strongest growth last year, expanding by 13.6 per cent to €432.8 billion. Exports to other EU countries were up 9.9 per cent at €627.3 billion; of those, €420.9 billion went to the eurozone, an 8.6 per cent rise.

Germany's imports rose last year to €902 billion from €797.1 billion in 2010 in a further indication that domestic demand was on the up. They broke the previous annual record of €805.8 billion, dating back to 2008.

Overall, the country's foreign trade surplus widened slightly in 2011 to €158.1 billion from €154.9 billion.

The government has forecast that exports will grow by only 2 per cent this year and economic growth of just 0.7 per cent. Last year, the economy grew by 3 per cent; in the fourth quarter, it is believed to have contracted by up to 0.3 per cent compared with the previous three-month period — actual figures are due next week.

Monthly figures indicated softness ahead.

Exports in December came in at €85.1 billion, down 4.3 per cent on the previous month when seasonal and calendar factors were accounted for. In year-on-year terms, a 5 per cent gain was fueled entirely by growth in exports to countries outside the eurozone — to which Germany exported 3.3 per cent less.

Imports were also down 3.8 per cent at €72.1 billion and were down 3.9 per cent.

Germany's main exporters association said it remains confident for 2012 because of solid growth in major emerging economies such as China and India.

But "despite the positive outlook, we are concerned about Europe," said the BGA group's head, Anton Boerner. "It is not yet certain how far declines in orders can be compensated for by rises in orders from emerging countries."

"We must not let off in efforts to get a grip on the debt crisis," Boerner said.

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