German foreign trade got off to a better start than expected in April. Exports rose surprisingly, by 1.2 percent compared to the previous month. They also come to a volume of 130.4 billion euros, as the Federal Statistical Office announced on Monday.

In March, there had been a minus of 6.0 percent. Economists surveyed had expected a decline of 2.5 percent for April. Imports fell by 1.7 percent to 112 billion euros, almost twice as much as expected.

"Trend is pointing downwards"

The trade balance showed a surplus of 18.4 billion euros. "The growth is far from sufficient to make up for the sharp decline of the previous month," said chief economist Alexander Krüger of Hauck Aufhäuser Lampe Privatbank. The outlook is mixed. "Foreseeable decreasing impulses from China and the USA are not exactly brightening the export view."

Carsten Brzeski, chief economist at Bank ING, sees German exports as very volatile since last summer. "However, the general trend is downwards and not upwards," he said on Monday after the release of the new data. Trade is no longer the strong, resilient growth engine of the German economy. He lists the following reasons for this: friction in supply chains, a more fragmented global economy and China's increasing ability to produce goods that it previously sourced from Germany itself.

Brzeski points out that in the first quarter, the share of German exports to China fell from almost 8 percent before the pandemic to 6 percent of total exports. "At the same time, however, Germany's dependence on imports from China remains high, as the energy transition is currently not possible without Chinese raw materials or solar modules."

Exports to the EU countries rose by 4.5 percent to 71.4 billion euros in April compared to the previous month. The United States remained the number one customer country, selling goods worth 13.1 billion euros, an increase of 4.7 percent. Exports to China grew by 10.1 percent to 8.5 billion euros, while those to the UK fell by 5.2 percent to 6.1 billion euros. Exports to Russia fell by 17.8 percent to 0.7 billion euros.