German exports to grow ‘decade high’ of 16pc
German exports will rise at the fastest pace in a decade this year and exceed the €1 trillion level for the first time in 2011, fueled by demand for cars and machinery from outside Europe, the BGA federation said.
Exports will grow about 16pc, boosting the value of goods and services sold abroad in 2010 to €937bn, the Berlin-based group said today, revising an August forecast of about 10pc. Exports will climb about 7pc next year, the federation said.
“German exports are booming,” BGA President Anton Boerner said in a prepared speech.
“Foreign orders are signed and sealed for the rest of the year and we’re optimistic looking ahead,” though the federation is “concerned” about the risk of a recession in the US.
The BGA expects shipments abroad, which pulled the German economy out of a recession this year, to grow 25pc to countries outside Europe this year.
Exports to the European Union’s 27 members, many of which are struggling to manage bloated deficits, will grow 13.5pc, the BGA said.
Germany’s economy, Europe’s largest, is leading the region’s recovery from the recession.
Growth accelerated to 2.2pc in the second quarter, the fastest pace in two decades, while economies such as Ireland and Greece contracted. The Bundesbank said yesterday that Germany’s economy may expand more than 3pc this year.
The BGA said it expects imports to climb about 17pc this year to €789bn, creating a net trade surplus of €148bn.
The possibility that the US economy will enter a recession poses a risk to exports in the medium term, Boerner said.
The weaker US currency “is already beginning to make exports to the dollar area more difficult,” he said.