Germany reported a larger-than-expected increase in exports in January as its economy attempts to rebound from the fourth quarter contraction.

Specifically, exports jumped 1.4% on-the-month, compared to the 0.3% growth forecast and settled well above the prior 0.2% advance.

Imports also jumped 3.3% after the prior month's 1.5% drop. Consensus had been looking for only a 1.0% increase.

The seasonally-adjusted trade balance for January came in at €15.7bn, slightly below the €15.8bn forecast, while the current account surplus dropped from December's €20.2bn to €11.3bn.

Germany's economy shrank 0.6% in the fourth quarter of 2012 due to weakening demand for its exports as Eurozone countries struggle with the recovery. The European Central Bank (ECB) was forced to cut its forecast for the euro area to a contraction of 0.5%, while expecting growth of only 1% in 2014. Nevertheless, German officials are still expecting Berlin to avoid a recession by achieving growth in the first quarter of this year.

JM

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