Germany's trade surplus with the rest of the world widened sharply to a record level in March as the biggest increase in exports in almost three years helped to offset weak domestic consumption in Europe's largest economy.
Official statistics showed Germany's trade surplus increased to a record €16.5 billion from €12.1 billion in February, way above analysts' consensus forecast of €12.3 billion.
Exports rose by 16.6 per cent in March on the year, the biggest rise since April 2001, the Office said. Imports rose by 5.3 per cent from a year earlier. In March 2003, the trade surplus was euro9.7 billion.
"This shows that the main drivers from the German economy are still coming from exports," said Mr Klaus Schruefer, an economist at SEB bank in Frankfurt.
"The data also shows that domestic demand in Germany is still weak," said Mr Schruefer. "Imports may have risen strongly too, but the rise is still much lower than with exports."
The data came as the OECD cut its 2004 growth forecast for Germany to 1.1 per cent from 1.4 per cent, but said foreign demand for German goods would power the country's economic recovery.
Mr Joerg Kraemer, chief economist at Invesco Asset Management in Frankfurt, said the strength of global trade had helped offset the adverse effects for German exporters of the euro's sharp appreciation against the dollar in 2003 and early 2004.
Mr Kraemer was upbeat about the export data, and said GDP had probably grown by 0.3 per cent in the first quarter.