Trade Balance – Germany – Euro-zone

The difference between the value of exports and imports in Germany. Trade Balance is one of the biggest components of Germany ‘s Balance of Payment. As Germany is Europe’s largest economy and given Germany’s export oriented economy, trade data can give critical insight into pressures on the value of the Euro.

In order to gauge the effect of German Trade Balance on the Euro, German trade is separated into intra-Euro-zone trades and extra-Euro-zone trades. Intra-trades between Germany and Euro-zone member countries have no affect on the overall valuation of Euro. Extra-trades between Germany and other countries outside of Euro-zone do impact the overall Euro-zone trade balance. Given Germany’s large share of Euro-zone exports, the figure tends to move the market upon release.

Trade surpluses reflect funds coming into Germany in exchange for goods and services. Such currency inflows may lead to a natural appreciation of a Euro, unless countered by similar capital outflows. At a bare minimum, surpluses will boost up the value of the currency.

The headline figure for trade balance is expressed in billions of Euros.

Relevance: Tends to move markets on release
Release schedule: 6:15 (GMT); monthly, provisional reports are available approximately 40 days after the end of reference period.
Source of report: Federal Statistical Office Germany
Web Address: http://www.destatis.de/indicators/e/iwf01.htm
Address of release: http://www.destatis.de/indicators/e/ahlueb.htm refer to Trade Balance
AKA: Foreign Trade, Balance of Trade

 

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