BERLIN (Reuters) -German exports rose significantly more than expected in February due to strong demand from the United States and China, posting their biggest increase in 10 months, data showed on Tuesday.
Exports increased by 4.0% on the previous month, the federal statistics office said. A Reuters poll had predicted a month-on-month rise in exports of 1.6%. Exports had risen 2.5% month-on-month in January.
"The export sector is back on track for growth, and the sharp setback in December has been made up," Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe, said. Exports fell 6.1% month-on-month in December.
In February, exports to European Union countries rose 2.0% on the previous month, while exports to the U.S. and China increased by 9.4% and 10.2% respectively compared with January.
"The exports business is benefiting from better functioning supply chains and the opening of the Chinese economy," Thomas Gitzel, chief economist at VP Bank, said.
Imports grew by 4.6% compared with January, the office reported, versus analysts' expectations for a 1.0% rise. The increase follows five consecutive monthly contractions.
The foreign trade balance showed a surplus of 16.0 billion euros ($17.42 billion) in February, unchanged from the previous month and up from 10.7 billion euros in the same month of the previous year, both in calendar and seasonally adjusted terms.
Supply chain problems, the energy crisis and geopolitical risks are expected to take their toll on exporting companies this year.
The German Chamber of Commerce and Industry DIHK forecasts real export growth of 2.5% in 2023, one percentage point below average growth during the previous decade.
Sentiment among German exporters brightened somewhat in March, with Ifo's export expectations rising to 4.0 points from 3.5 points in February.
Despite the increase, export demand still lacks momentum, Klaus Wohlrabe, head of surveys at Ifo, said.