* Exports rise 3.0 percent m/m, imports up 4.5 percent m/m
* Exports show first annual rise in 14 months
* Trade surplus 16.7 bln euros vs 17.0 bln euros in Nov
(Adds economist comment, background)
By Paul Carrel
BERLIN, Feb 9 (Reuters) - German exports rose by 3.0 percent on the month in December, pushing foreign demand above the year-ago level for the first time in 14 months and easing concerns about economic recovery.
The monthly rise in the exports -- the fourth in a row -- was, however, accompanied by a larger rise in imports, which ate into Germany's trade surplus, official data showed on Tuesday.
Adjusted for seasonal swings, German exports rose by 3.0 percent on the month to 72.3 billion euros ($98.8 billion), with imports climbing by 4.5 percent to 55.6 billion euros, the preliminary data from the Federal Statistics Office showed.
"Today's numbers highlight once again that the German economy can almost always rely on a helping hand from the export sector," said ING Financial Markets economist Carsten Brzeski.
"The road might be bumpy but it is the road to recovery and not a dead-end street."
The trade surplus with the rest of the world shrank to 16.7 billion euros in December from 17.0 billion euros in November. A reading of 15.0 billion euros had been forecast.
Germany had been the world's biggest exporter of goods since 2003, though it was likely overtaken by China last year. Exports from Europe's biggest economy were expected to rise by 0.7 percent and imports to grow by 3.0 percent in December.
The government expects the economy to grow by 1.4 percent this year, driven by a projected 5.1 percent rise in exports. However, Economy Minister Rainer Bruederle said last Friday Germany's economic recovery was not yet self-sustaining.
CAUTIOUS OPTIMISM
Despite a drop in industry orders in December, leading companies are cautiously optimistic.
German chipmaker Infineon doubled its 2010 sales growth forecast late last month as it posted strong first quarter results, pointing to continued high demand which it said underscored signs of a rebound.
"Although uncertainties in the worldwide economy remain regarding developments in the second half of this fiscal year, we are raising our guidance for the full 2010 fiscal year," Infineon Chief Executive Peter Bauer said.
German business sentiment rose more than expected in January to its highest level in 1-1/2 years, suggesting recovery will gather pace once the economy emerges from a harsh winter.
"Exports are just going from strength to strength," said DekaBank economist Andreas Scheuerle.
"It looks like it's turning into a typical German recovery which will rely on foreign demand for a long while. But Germany is vulnerable because of this."
Economists expect private consumption will lend little if any support to the recovery this year, with an expected rise in unemployment sapping households' willingness to spend. German consumer sentiment eased going into February.
"If foreign demand falls away, there's little we can do to compensate," said Scheuerle. (Additional reporting by Dave Graham; Editing by Ruth Pitchford)