German trade surplus narrows in January as exports drop for second consecutive month

German trade surplus narrowed in January as exports dropped for the second consecutive month and imports boosted due to strong domestic demand, official data showed on Thursday.

Shipments from Germany in January were 0.5 percent fewer than in December last year when exports fell by 0.7 percent. Meanwhile, imports grew by 1.2 percent month on month, said German federal statistics office Destatis.

Adjusted for calendar and seasonal swings, German trade surplus, the balance between exports and imports, narrowed to 18.9 billion euros (20.76 billion U.S. dollars) at start of the year.

Year-on-year, German exports dropped by 1.4 percent from January 2015, as a result of a 5.0-percent slump in sales to countries outside the European Union.

The German economy, the biggest in Europe, has turned its driving engine from exports to domestic demand in recent years as the world economic recovery remained subdued. Economists do not expect to see a growth contribution from foreign trade before 2018.

On the positive side, the German labor market remained stable, household income increased, energy became cheaper, and interest rates fell, spurring Germans to open their wallets.

In 2015, the German economy grew by 1.7 percent. Private consumption was the main driving force. Endit