Export dip

German exports sank unexpectedly in July 2010. German companies sold 1.5 percent fewer products abroad than in the previous month, according to the Federal Statistical Office.

Analysts had predicted better figures, after exports grew by 3.7 percent in June. In July, Germany exported goods worth a total of 83 billion euros ($106 billion).

However, compared to the same period a year ago, German exports increased by 18.7 percent in July 2010 on July 2009. At the time exports were severely affected by the global economic crisis.

This summer, business has been particularly strong with countries outside Europe. Turnover rose by 25.1 percent on the previous year in the global market. In EU states, volume of sales rose by 14.6 percent.

Experts are predicting that despite Germany's relatively strong economic performance in recent months, it will be harder to grow as the effects of financial cuts in other countries kick in, and the US warns of a double-dip recession.

Germany experienced its worst recession in more than six decades last year, but has bounced back strongly, predominantly on the back of improved global demand for its exports.

Meanwhile imports shrank at the start of the second half of the year by 2.2 percent compared to June. In total, commodities to the value of 69.5 billion euros were imported into Germany.

Author: Joanna Impey (AP/dpa/Reuters)
Editor: Chuck Penfold