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11:22AM GMT 08 Feb 2012
Data from Germany’s Federal Statistics Office said seasonally-adjusted exports fell 4.3pc in December - far more than the 1pc decline that analysts forecast in a Reuters poll.
For the whole year, German exports topped €1trillion for the first time - at €1.06trillion - but fell sharply at the end of the year as the debt crisis worsened.
The December figures compound a gloomy week for Germany after data on Tuesday that showed industrial output fell 2.9pc month-on-month in December, also representing the biggest fall since January 2009.
Economists said together the data suggest the Germany economy, which rebounded after the 2008 financial crisis due to its strong exports, contracted more than expected in the final quarter of 2011. Last month the official statistics office said the economy probably contracted by 0.25pc in the final quarter of 2011.
At the same time, German imports in December dropped by 3.9pc when they had been forecast to rise by 0.6pc. For the whole year, imports were a record €902bn.
The drop in exports helped narrow the trade surplus to €13.9bn from a revised €14.9bn the month prior, missing a consensus forecast for a dip to €14bn.
Overall, the figures put Germany as the world's second biggest exporter, after China which exported €1.4trillion and had a trade surplus of €117bn in 2011. However economists were still concerned by the end of year data.
Christian Schulz, an economist at Berenberg Bank said: “That’s a poor end to the year. Together with falling industry orders and weak production it shows that the German economy contracted in the fourth quarter and could be facing a recession.”
However he added: “All signs now however point to a recovery. All important indicators like the Ifo business climate and consumer morale are clearly on a positive trend. The euro crisis has calmed down, at least on the financial markets. If that stays the case, Germany can return to growth in the Spring at the latest.”
Andreas Scheuerle, an economist at Dekabank said: “December was not a good month. Now, exports have shown a sign of weakness as well. The European debt crisis is being coupled with a weakening of global demand. At the same time, the 3.9 percent fall in imports shows that domestic demand was weak.”
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