German economy

German exports, widely seen as the driving force behind the country's economic recovery, fell by 6.3 percent in January compared with the previous month, according to official figures.

It was the first drop after four months of gains. It has been partly blamed on the unusually cold weather, which slowed down work done outside, such as construction.

The figures were worse than expected, but analysts expect the recovery to continue, not least because order books are filling up again. In January, orders rose by 4.3 percent.

"Despite exports backtracking, we are retaining our prediction that the German economy will continue to recover and that foeign trade will play a major role in driving this recovery," said Simon Junker, economist at Commerzbank, told dpa news service.

China on top

China is a major trade partner for Germany. Its exports rose faster than expected, surging 46 percent in February, according to the government's latest figures.

Germany lost its title of leading global exporter to China last year. But demand from developing countries such as China is crucial for Germany, as domestic demand alone cannot sustain the recovery.

Last year, the German economy posted the biggest drop in gross domestic product since the end of World War II. GDP fell by 5 percent in 2009.

ng/dpa/RTRS
Editor: Jennifer Abramsohn