Foreign demand for German goods is still relatively buoyant, but exports are on a downward trend with no turnaround in sight, the German Finance Ministry said today.
"In view of declining foreign orders to the industrial sector, no strong upturn in exports can be expected in the short term," the Finance Ministry said in its July monthly report.
According to a Reuters poll published last week, Europe's largest economy is seen expanding by a mere 0.1 per cent this year, and economists said future growth would depend on how well exports developed.
The poll also showed analysts expect exports to grow by just 3 per cent this year.
Exports have traditionally been the mainstay of the German economy, but demand for German goods has been dented by a strong euro and lame growth in the country's biggest export markets - the euro zone and the United States.