German import prices, public debt fall: official study

BERLIN, March 27 (Xinhua) -- Import prices and government debt levels have fallen in Germany, official figures published on Tuesday by the Federal Statistical Office show.

According to the official study, import prices were 0.6 lower in February 2018 compared to the same period last year. The Wiesbaden-based government statisticians highlighted that the figure marked the first monthly decline measured since October 2016.

Broken down by sub-categories of imported goods, the decline was mainly driven by the consumers goods sector (minus 2.1 percent compared to February 2017) and agricultural goods sector (minus 9.8 percent). While imported capital goods were 1.2 percent cheaper than last month, the cost of energy sources was up by an annual 3 percent but also fell by 4.6 percent compared to January.

Speaking to Xinhua on Tuesday, Thiess Petersen, senior economics expert at the Bertelsmann Foundation, explained that the decline in import prices was above all a consequence of the "strong Euro".

"During the past 12 months the Euro has appreciated by around 15 percent versus the dollar to name just one example. The resulting simultaneous depreciation in the value of foreign currencies lowers the cost of imported goods in Germany", Petersen explained.

Petersen pointed out that the trend could help Berlin reduce its controversial trade surplus. "If foreign consumer goods and intermediate goods become cheaper, German imports rise. This lowers Germany's high export surplus which was recorded at around 250 billion euros (310 billion U.S. dollars) in 2016 and 2017 and has increasingly prompted international criticism."

U.S. president Donald Trump and the Washington-based International Monetary Fund (IMF) in particular have repeatedly attacked Germany for allegedly pursuing an excessively export-focused growth strategy and thus contributing to disequilibrium in the international balance of payments between countries.

At the same time, the Federal Statistical Office released figures on Tuesday which showed that Germany's ongoing economic boom was reflected in further declines in public debt. The combined liabilities of all levels of government towards private sector lenders were estimated at 1.9 trillion euros at the end of the fourth quarter (Q4) of 2017 (minus 2.1 percent compared to Q4 2016).

Federal-, state- and municipal governments were all able to reduce their levels of debt during the period. The Munich-based Ifo Institute for Economic Research (Ifo) recently predicted that Germany would sustain its current economic momentum in 2018 and witness an annual expansion in gross domestic product (GDP) of 2.6 percent. Enditem