German Exports Set to Continue to Expand This Year
German exports are expected to remain the primary engine of growth in the eurozone’s biggest economy this year when they are scheduled to grow by around six percent, the BGA wholesale and export federation predicted.
The federation said it expected Germany to export about 777.5 billion euros’ (one trillion dollars’) worth of goods in 2005, a rise of six percent from 2004 levels.
The forecast was made "on the condition that the dollar does not find itself on a new downward spiral again soon", BGA added on Tuesday.
In 2004, Germany held on to its title of the world’s champion exporter by exporting goods worth a total 731 billion euros and running up a trade surplus of 155.6 billion euros.
This year, the trade surplus was expected to grow to 171.2 billion euros, BGA predicted.
Exports were expected to grow particularly strongly to Russia, China and central and eastern Europe.
BGA said it based its forecasts on the assumption that the global economy would grow by six percent and the German economy by one percent.
"Without exports as the main driving force, Germany would be on the brink of a recession. We’re not managing to revitalise domestic demand," BGA president Anton Boerner said.