The exports in Germany fell by 11.8 percent in March which is the steepest drop since the currents records statted in 1990 as the coronavirus or COVID-19 crisis decreased the demand of goods for the Europe's largest economy, the Federal Statistics Office stated on Friday.
The seasonally adjusted imports decreased by 5.1 percent and trade surplus narrowed to 12.8 billion euros from a descendingly revised 21.4 billion euros in the previous month, the office mentioned.
Exports in Germany fall due to the Coronavirus crisis
Economists polled by Reuters had expected exports to fall by five percent and saw imports down four percent. The trade surplus was expected to come in at 18.9 billion euros. The German government expects the economy, which has traditionally been dependent on exports, is expected to shrink by a post-World War Two record of 6.3 percent despite a massive rescue package of 750 billion euros to cushion the impact of the pandemic.
Economists expect any recovery to be slow and the pace of an economic rebound will largely depend on how fast Germany's European neighbours and other trade partners like China and the United States emerge from the crisis. "The interdependence of the global economy will be fatal for the export sector during the coronavirus crisis," Alexander Krueger of Bankhaus Lampe wrote in a note, adding that the worst was still to come.
(With agency inputs)