Germany’s exports and imports likely to have grown in July

Germany’s exports and imports are likely to have to have risen in July. According to a Societe Generale research note, exports are expected to have grown 0.4 percent in sequential terms, whereas imports are anticipated to have risen 0.6 percent.

The headwinds from foreign demand slowed in the second quarter, with quite subdued imports suggesting that the contribution of net exports to quarterly GDP growth increased to 0.6 percentage points, whereas stocks and domestic demand were a drag on the GDP growth.

Since the U.K. voted to leave the European Union in June, the outlook for exports have softened slightly; however, export orders continued to be at a high level in August too. Therefore, any material weakness is unlikely in the third quarter because of external demand. The trade surplus is likely to have fallen to EUR 24.5 billion in July from EUR 24.9 billion in June, added Societe Generale.