German exports sharply declined by 2.4 percent in May compared to previous month.
Official figures show that Germanyâ„¢s export volume experienced a surprise decline in May, amid a sharp fall in demand in the recession-hit eurozone.
Germanyâ„¢s Federal Statistics Office revealed on Monday that the countryâ„¢s seasonally-adjusted exports plummeted 2.4 percent in comparison to previous month, falling more than the forecasted 0.1-percent gain.
Å“German exports dropped sharply in May, illustrating that the economy still has difficulties to shift into a higher gear,” said senior economist Carsten Brzeski.
It was the biggest decline in exports since late 2009 and analysts say the reasons for the decline are the eurozone crisis, where Germany sends 40 percent of its shipments and a weaker demand from China, which many German manufacturers had looked to as an alternative.
A recent purchasing managersâ„¢ survey suggested that the export situation would not improve in June since bookings from abroad dropped in the manufacturing sector for a fourth straight month.
The German government expects the countryâ„¢s exports to negatively affect gross domestic product (GDP) this year and is instead relying on private consumption, helped by higher wages, to support economic growth.
Germanyâ„¢s economy weakened in 2012 and is now struggling as it just avoided recession after posting a mere growth of 0.1 percent in first quarter of this year, following a 0.5 percent contraction in final quarter of 2012.
CAH/HSN
Republished with permission from: Press TV