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German Q3 exports to China beat trend-stats office

Published 01/04/2010, 09:12 AM
Updated 01/04/2010, 09:15 AM

BERLIN, Jan 4 (Reuters) - German exports to China surged ahead in the third quarter of 2009 while overall exports fell, the Federal Statistics Office said on Monday.

Exports to China rose 14.5 percent from July through September compared to the same period a year earlier, reaching 9.8 billion euros. That compared to a 19 percent drop in overall exports, which stood at 200.2 billion euros.

Beijing's economic stimulus packages and looser monetary policy have driven the increase, said Commerzbank economist You-Na Park.

"This clearly boosted Chinese demand... the fiscal stimulus should continue in 2010, but not as strong as in 2009 and it will probably run out in the second half of the year," she added.

Chinese officials have repeatedly pledged in recent weeks that the country will maintain its "appropriately loose" monetary policy while also enhancing flexibility, which many analysts see as a signal of its intention to step up mild tightening.

Germany has been the world's biggest exporter of goods since 2003 but China is expected to overtake it soon, possibly even in 2009. (Reporting by Klaus Lauer, writing by Brian Rohan; Editing by Toby Chopra)

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