German Exports Plunge as Global Crises Hit Growth Outlook

(MENAFN- QNA) German exports saw their biggest fall in more than five years in August amid a sharp contraction in demand from the nation's major trading partners in the eurozone and a series of global crises.

Exports from Europe's biggest economy plunged 5.8 per cent from July, when they rose 4.8 per cent, the Federal Statistics Office said Thursday.

"The problem for Germany is that it faces weakness in all its major trading partners," said ING Bank economist Carsten Brzeski.

The August fall represented the sharpest drop since January 2009, when the global financial crisis hit Germany's industrial sector and paved the way for a recession in the country.

Analysts surveyed by dpa-AFX had predicted a 4-per-cent decline for the period.

The data adds to the gloomy picture that has emerged of the German economy this week with figures also showing factory orders and production chalking up their biggest falls since early 2009.

Unemployment rose for a second consecutive month in September.

Monthly imports were down by a surprise 1.3 per cent in August from a 1.4-per-cent slump in July, the statistics office said.

The seasonally adjusted trade balance dropped to 17.5 billion euros (22.3 billion dollars) from 22.2 billion euros in July.