German Exports Increase Thanks to China, But With Negative Impact of Brexit

German exports rose in February, as they received support from increased trade with China in a new indication that factories in Europe’s largest economy are buoyant despite a sharp drop in trade with the United Kingdom after its exit from the European Union.

On Friday, April 9, the Federal Statistics Office said exports, adjusted for seasonal factors, rose 0.9% month-on-month after an upwardly revised 1.6% increase in January.

Imports rose 3.6%, after declining 3.5% in the previous month.

The trade surplus shrank to 19.1 billion euros.

On an annual basis, exports to China increased by 25.7%.

Germany’s exports to the United Kingdom fell 12.2% year-on-year in February and imports fell 26.9%, the Federal Statistics Office said.

Exports to the rest of the European Union fell 0.3% year-on-year, and imports rose 0.7%.

The United Kingdom left the European Union’s single market at the end of last year, increasing barriers to trade.

This final separation came after more than four years of controversy over the terms of its exit from the European Union, during which German companies began to reduce their dealings with Britain.

Separate data on Friday, April 9 showed that industrial production in February fell 1.6%.