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German Exports Soar to Record High

German Exports Soar to Record HighGerman Exports Soar to Record High

Germany exported over 100 billion euros in goods and services during the month of July on the back of strong demand from its European neighbors. It was the highest-ever figure for a single month, DW reported.

German exports for July were up 8.5 percent year-on-year to 101 billion euros ($130.8 billion). It was the first time a single month's exports were above the 100-billion euro mark, according to Destatis, Germany's Federal Statistics Office.

Nearly 60 billion euros' worth of goods and services went to other European countries, with the automotive sector contributing a large share.

Germany's trade surplus set a new record as well, hitting 23.4 billion euros. The statisticians say a later start date for summer holidays this year may have contributed to the record figures.

The strong export numbers came on the heels of disappointing GDP figures last week. Growth in Europe's biggest economy fell by 0.2 percent in the second quarter, compared to the previous quarter. Both industrial production and factory orders, however, showed a rise in the last two months, leading many economists to suggest that the dent in growth may turn out to have been just a blip.

Budget Without Debts 

Parliamentarians in Berlin have begun the often arduous process of hammering out Germany's 2015 budget. For the first time since 1969, Finance Minister Wolfgang Schauble is aiming for a bottom line written in black ink.

Wolfgang Schauble's first budget proposal for 2015 foresees total federal spending just shy of 300 billion euros ($386 billion). It's Germany's first budget in 45 years that does not predict that adoption of any new sovereign debts. Thanks to rising tax revenues and rock-bottom interest rates, Germany now also expects a budget surplus for 2014, but this was not initially predicted.

The conservative finance minister's broader fiscal plans through 2018 are also up for discussion in the Bundestag; Schauble expects the remaining years of the legislative period to boast balanced budgets as well.

Schauble told parliament on Tuesday that geopolitical tension and Europe's persistent economic problems meant it was important for Germany to focus on balancing its books. "Anything else would lead to a new investor confidence crisis," Schauble said.

Financialtribune.com