Germany fears recession as imports increase

Imports and Exports | | MIC Customs Solutions |

Disappointing trade data in Germany has led to speculation about a recession.

There are concerns that Germany could be on the brink of a recession after new data showed its imports have increased at the same time as exports remained almost flat.

According to the Federal Statistics Office, imports rose by 0.5 per cent during June 2019, a higher figure than the 0.3 per cent recently predicted in a Reuters poll.

Meanwhile, exports declined by 0.1 per cent, marking an eight per cent decrease from the same month a year earlier.

Chief economist of ING Germany Carsten Brzeski told the Financial Times the news makes "a small contraction in the economy more likely in the second quarter".

There are predictions that figures set to be published next week will show a decline in Germany's GDP in the three months to June.

The disappointing trade data was attributed to weakness arising from the US's ongoing trade war with China, as well as uncertainty over the UK's forthcoming exit from the European Union. 

Earlier this month, it was revealed that the British economy had shrunk for the first time since 2012 during the second quarter.