The Federal Statistical Office (Destatis) reported on Thursday that Germany's trade surplus (non-adjusted) expanded to EUR18.1 billion in July from an unrevised EUR16.3 billion in June, but was lower than a surplus of EUR 19.2 billion recorded in the same month a year earlier. The July reading was the highest since March.

According to the report, German exports fell 3.1 percent m-o-m and imports decreased 5.5 percent m-o-m in July. In y-o-y terms, exports jumped 12.4 percent y-o-y and imports soared 16.6 percent y-o-y in July.

On a seasonally adjusted basis, the trade surplus rose to EUR17.9 billion in July from EUR13.6 billion in June. Economists had expected a surplus of EUR13.0 billion for July. Exports increased 0.5 percent m-o-m on a seasonally adjusted basis, while imports fell 3.8 percent m-o-m. Compared to February 2020, the month before coronavirus restrictions were imposed in Germany, exports were up 1.6 percent and imports were up 5.9 percent.

The current account of the balance of payments posted a surplus of EUR17.6 billion in July compared to EUR22.5 billion in the previous month and EUR20.2 in the corresponding period of 2020.