Germany’s trade surplus narrowed more than expected in August as exports rose at a slower pace than imports.
The country’s balance of exports and imports of goods–was 1.2 billion euros ($1.19 billion) in calendar and seasonally-adjusted terms in August, narrowing from a EUR3.4 billion surplus in July, according to data from German statistics office Destatis released Wednesday.
The reading misses economists’ forecasts, who had expected a EUR4.0 billion surplus in August.
German exports rose 1.6% on month to EUR133.1 billion, while imports increased 3.4% to EUR131.9 billion.
Exports to European Union countries dropped by 0.8% on month, while imports from those countries rose by 2.5%. Exports to countries outside the EU increased by 4.7% and imports from those countries by 4.2%, Destatis data showed.
Germany’s trade surplus has shrunk significantly in the last few months as softening external demand weighs on exports from the country’s powerful manufacturing sector. The cost of imports has also increased markedly since the start of the war in Ukraine as energy prices soared.
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