German trade surplus narrows in January

German surplus of foreign trade narrowed in January as exports dropped more than expected, official data showed on Monday.

In calendar and seasonally adjusted terms, trade surplus in Europe's biggest economy fell to 19.7 billion euros (about 21.4 billion U.S. dollars) in the first month of 2015 from 21.6 billion euros in December last year, German national statistical office Destatis said.

Exports dropped by 2.1 percent in January when compared with the previous month, while imports declined by 0.3 percent month on month.

Economists had expected the exports to fall by 1.5 percent following a gain of 2.8 percent in December.

Year on year, German exports declined slightly by 0.6 percent in January, while imports reduced by 2.3 percent.

Destatis attributed the fall in exports to weak demands in Germany's euro zone partners where received 4.5 percent fewer goods from Germany than a year earlier.

Analysts, however, said despite the current fluctuation, foreign trade would ultimately rebound in the new year thanks to a weaker euro.

Recent economic indicators, including robust sentiment of consumers and business as well as increasing industrial output, also pointed to a recovery in the German economy.

Low energy prices, stable labour market and the large scale fresh money stimulus from the European Central Bank were regarded as key factors supporting the revival. ( 1 euro = 1.09 U.S. dollars) Endit