Germany's trade surplus narrowed in December from the previous month as export demand declined amid the strengthening of the euro. The trade surplus narrowed to E8.2bn in December from E12bn in November and E8.3bn a year earlier, according to provisional figures from the Federal Statistics Office. Exports fell 2.1pc in December from November, while imports were down just 1.3pc. On a year-on-year basis, exports rose 5.6pc, but imports climbed 7pc, the statistics office said.
For the year as a whole, Germany posted a trade surplus of E126bn, wider than the surplus of E95.5 billion in 2001. The German economy expanded by just 0.2pc last year, its slowest growth since 1993. Growth was largely driven by exports, according to figures last month, but foreign demand for German products could slow this year as the appreciation of the euro makes German goods more expensive outside the eurozone. Export demand will be further impacted if the US attacks Iraq. Separately, the statistics office reported today that German wholesale prices rose by 1.4pc in January from December and were up 1.2pc from a year earlier. Excluding oil prices, wholesale prices in January rose just 0.7pc on the month and were down 0.2pc from a year earlier. //www.fxcentre.com