German exports and imports climbed in September showing demand both at home and abroad was surprisingly strong in the third quarter.
Data released by Germany's official statistics office today showed exports up 10.9 per cent from a year ago at €55 billion in September; imports were up 3.6 per cent year-on-year at €44.1 billion.
Economists said the import data was a positive sign for domestic demand in Europe's largest economy, while strong exports would help buoy economic growth in the third quarter.
However, they said the upturn would be short-lived, and that government plans to raise taxes and pensions contributions would hurt demand in the coming months.
"An expected upturn in US growth next year should help German exports next year, but this depends on how the Iraq conflict develops . . . an extended conflict could push up oil prices and hurt exports," said Mr Andreas Sheuerle of DekaBank.
