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By Dave Graham
BERLIN, May 8 (Reuters) - German exports posted their first rise in 6 months in March, lending fresh encouragement to the growing view Europe's largest economy may soon begin pulling out of its severest postwar recession.
Preliminary Federal Statistics Office figures on Friday showed that adjusted for seasonal swings, exports rose by 0.7 percent to 66.4 billion euros ($88.46 billion).
Imports also posted their first monthly increase since September, climbing by 0.8 percent to 57.6 billion euros.
"The German patient is on the road to recovery though he's still sickly. However, slowly but surely, we're seeing a bit of stabilisation with the hard data," said UniCredit economist Andreas Rees. "The recession isn't over though."
The data meant Germany's adjusted trade surplus held steady at 8.9 billion euros. A surplus of 8.0 billion had been forecast in a poll of analysts last week. The survey saw exports falling by 2.0 percent month-on-month, and imports by 1.9 percent.
Germany, the world's biggest exporter of goods since 2003, is expected to suffer an economic contraction of around 6 percent this year, dragged down by a slump in exports.
This would be nearly 7 times worse than Germany's previous worst performance in any year since World War Two.
Data on Thursday showed a jump in foreign demand fuelled an increase in German manufacturing orders in March. Analysts saw this as a potential sign the economy will begin recovering in coming months after a sharp first quarter contraction.
The 3.3 percent rise in German orders was the first monthly increase in 7 months, and the biggest since October 2007.
BANK BOTTLENECK
The Economy Ministry has said German gross domestic product likely shrank by around 3.5 percent during the first quarter, which would be the biggest dip since reunification in 1990.
Government ministers have said some firms are having trouble getting funding due to the financial crisis, and that the banking sector must stabilise for the economy to pick up.
Finance Minister Peer Steinbrueck has stepped up efforts to lay down a framework for banks to take their toxic assets off balance sheets, which it is hoped will stimulate lending.
Earlier this week, government sources said Chancellor Angela Merkel's administration had reached a basic agreement to provide special purpose vehicles (SPVs) for banks which could house up to around 200 billion euros worth of problem assets.
In the meantime, industry continues to struggle.
Manufacturers, who have led Germany's export drive in recent years, have been hit especially hard by the global downturn.
Rees at UniCredit said it was too early to rule out further setbacks on exports or incoming orders in April or May.
Carmaker Daimler
"But there are increasing signs the recession in the second quarter will be significantly milder than in the first three months of 2009," Rees said. "The worst has definitely passed." (Additional reporting by Brian Rohan; editing by Chris Pizzey)