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Last Updated: Friday, 7 April 2006, 11:25 GMT 12:25 UK
German trade balance gets boost
The new BMW 750 Li series on display at the Bangkok motor show
Germany is selling more products outside Europe
Germany's monthly trade balance has improved, thanks in part to strong growth in exports outside Europe.

The trade surplus rose to 13.1bn euros ($15.97bn; �9.13bn) in February, up from 12.5bn euros the previous month, according to government figures.

The value of exports outside the EU was 25% higher than a year ago - however, overall imports grew faster than exports compared to last year.

Economists said rising trade may boost economic growth in the first quarter.

Gradual recovery

Germany's economy has been on an upward curve in recent months, although there are fears that its gradual recovery could be held back by weak domestic demand.

On a monthly basis - and taking into account seasonal adjustments - exports rose 4.6% in value to 70.3bn euros in February.

The improvement in price competitiveness is reflected again very positively
Ulrike Kastens, Sal Oppenheim

Imports, meanwhile, gained 4.8% to 57.2bn euros.

On an annual basis, however, imports grew 27% outpacing export growth of 17.7%.

Analysts said they expected foreign trade to give a fillip to economic output in the first three months of the year, figures which should be published later this month.

"We have a good development in international trade and the improvement in price competitiveness is reflected again very positively," said Ulrike Kastens, from Sal Oppenheim bank.

"Since domestic demand is reviving, gross domestic product (GDP) in the first quarter will turn out well."

Germany's economic indicators have been largely positive in recent months, with unemployment falling below five million and business confidence at a five-year high.




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