-Christian Schulz, senior economist at Berenberg Bank
Last week we concluded that Europe's powerhouse is loosing momentum as during the week markets have received a series of disappointing figures. A slew of negative data continued this week, as German trade balance fell short of analysts' forecasts.
The German statistics published the nation's trade data for the month of February on Wednesday. Shipments from German economy plunged 1.3% in the second month of the year, following a 2.2% increase in January. At the same time, imports climbed 0.4% slowing from a 4.1% gain in the prior month. Markets were betting on a 0.5% decline and 0.1% increase, respectively. Disappointments resulted in a weaker-than-expected trade surplus, that stood at 15.7 billion euros in February, compared with 17.3 billion surplus in January and falling short of analysts' expectations for a 17.8 billion figure. All data is seasonally adjusted. Germany has been under pressure from the European Union and IMF for its reliance on exports and for importing not enough goods and services to boost struggling economies in the 18-nation's bloc.
It is not a question that the German economy is the star of the Eurozone, with its low unemployment, robust growth and relatively low debt level. And this week's drop in the trade surplus, which is still at the solid level, only reinforces this fact.
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