Germany posted a seasonally adjusted trade surplus of EUR 8.9 bln in February, up from EUR 6.8 bln in the previous month. The surprise improvement was entirely due to a 4.2% m/m decline in imports, which is likely driven to a large extent by lower energy prices. Exports fell 0.7% m/m, after 7.4% m/m in January and with this the fifth consecutive monthly decline. The deterioration in exports highlights just how much Germany is impacted by the slowdown in world growth, which is affecting demand for German products. Net exports will continue to detract from overall GDP growth this year. Unadjusted data showed a trade surplus of EUR 8.7 bln, down from EUR 17.1 bln in February last year and vs EUR 7.0 bln in January. The unadjusted current account surplus amounted to EUR 5.6 bln, down from EUR 16.5 bln in February 2008 and vs EUR 2.3 bln in the previous month.
