According to data released by the Federal Statistics Office, German exports declined by 1.8% MoM in August even as imports climbed 0.5% higher during this period. This was the steepest decline in exports since April, coming in weaker than economists’ expectations which were for a 1% decline in exports and a 0.2% decline in imports.

Germany’s trade surplus has reduced to 18.1 billion euros in August from a revised reading of 20.5 billion euros in July. Economists were expecting the trade surplus to reduce to 19 billion euros.

This news does not bode well the German economy which is heavily reliant on its manufacturing sector and trade. The risks of a recession in the economy continue to climb higher with the release of disappointing economic data. Earlier this week, German industrial orders had also shown a sharp decline during the month of August on the back of weakening domestic demand.