BERLIN (Reuters) - Germany’s trade surplus fell last year for the first time since 2009, data showed on Thursday - a further sign that vibrant domestic demand is sucking in more imports and slowly re-balancing the country’s export-oriented economy.

The European Commission and U.S. President Donald Trump have criticised Chancellor Angela Merkel for Germany’s large trade surplus, while scepticism towards free trade is mounting in some poorer euro zone countries.

International Monetary Fund chief Christine Lagarde has also urged Berlin to increase domestic spending and boost imports, warning that ballooning current account surpluses in countries such as Germany are partly responsible for the rise of protectionism elsewhere.

“The improvement of the trade balance is driven by imports and not by exports,” Dekabank analyst Andreas Scheuerle said. “This means we don’t have to put the brakes on exports. This is a win-win situation.”

In 2017, Germany’s trade surplus shrank to 244.9 billion euros ($300.9 billion) from its record high of 248.9 billion euros in the previous year, according to data from the Federal Statistics Office. It was the first decline since 2009.

The wider current account surplus, which measures the flow of goods, services and investments, edged down to 257.1 billion euros from 259.3 billion euros the previous year.

“This will please U.S. President Donald Trump, for whom the German export surplus has always been a thorn in his side,” said Christiane von Berg from BayernLB.

Exports rose by 6.3 percent in 2017 to a record high of 1.28 trillion euros, the data showed. But this was outpaced by an 8.3 percent increase in imports to 1.03 trillion euros, also an all-time high.

“Demand for German products clearly picked up on all continents. But we’re particularly pleased about the economic upturn in Europe,” said Holger Bingmann, head of the BGA trade association.

The recent appreciation of the euro has so far hardly affected German export flows, Bingmann added.

The German government expects the consumer-led upswing in Europe’s largest economy to continue this year, forecasting 2.4 percent growth for 2018 after 2.2 percent in the previous year.

To secure a fourth term as chancellor, Merkel on Wednesday handed her Social Democrat coalition partners control of the finance ministry, giving them licence to spend a record budget surplus, and embracing their demands for European reform.

The agreed hike in additional state spending is likely to boost domestic demand even further and help reduce the still-large trade surplus in coming years.

“It is an important signal that in the coalition government programme it has been agreed to strengthen investments in infrastructure and in vital technologies,” deputy economy minister Matthias Machnig, a Social Democrat, told Reuters.

A government report said last month import growth was expected to continue to outpace export growth in 2018.

In December alone, seasonally adjusted exports rose by 0.3 percent on the month while imports rose by 1.4 percent, the data from the statistics office showed.

A container ship is seen at the shipping terminal Eurokai in the Port of Hamburg, Germany November 6, 2017. REUTERS/Fabian Bimmer

The exports figure beat expectations of a 1.0 percent fall while imports also came in stronger than the forecast 0.5 percent decrease.

The seasonally adjusted trade surplus in December narrowed to 21.4 billion euros. This was smaller than the Reuters consensus forecast of a surplus of 21.7 billion euros.

($1 = 0.8140 euros)</s>BERLIN, Feb 8 (Reuters) - Germany's trade surplus last year fell for the first time since 2009, data showed on Thursday, in a further sign that vibrant domestic demand is sucking in more imports and slowly re-balancing the country's export-oriented economy.

Chancellor Angela Merkel has come in for criticism from U.S. President Donald Trump's administration for Berlin's large trade surplus with the United States, while scepticism towards free trade is mounting in some poorer euro zone countries.

International Monetary Fund chief Christine Lagarde has also urged Germany to increase domestic spending and boost imports, warning that the build-up of large current account surpluses in countries such as Germany is partly responsible for the rise of protectionism elsewhere.

"The improvement of the trade balance is driven by imports and not by exports," Dekabank analyst Andreas Scheuerle said. "This means we don't have to put on the brakes on exports. This is a win-win-situation."

In 2017, Germany's trade surplus went down to 244.9 billion euros ($300.86 billion) from its record-high of 248.9 billion euros reached in the previous year, according to data from the Federal Statistics Office. It was the first decline since 2009.

The wider current account surplus, which measures the flow of goods, services and investments, edged down to 257.1 billion euros from 259.3 billion euros in the previous year.

"This will please U.S. President Donald Trump for whom the German export surplus has always been a thorn in his side," Christiane von Berg from BayernLB said.

In December alone, seasonally adjusted exports rose by 0.3 percent on the month while imports rose by 1.4 percent, the data from the statistics office showed.

The exports figure beat expectations for a 1.0 percent fall while imports also came in stronger than the forecast for a 0.5 percent decrease.

The seasonally adjusted trade surplus in December narrowed to 21.4 billion euros. This was smaller than the Reuters consensus forecast for a surplus of 21.7 billion euros.

"The strong euro is hardly leaving a mark. Due to dynamic global trade, the euro appreciation is not posing an acute problem," Scheuerle said.

The German government expects the consumer-led upswing in Europe's largest economy to continue this year, forecasting 2.4 percent growth for 2018 after 2.2 percent in the previous year.

To secure a fourth term as chancellor, Merkel on Wednesday handed her Social Democrat coalition partners control of the finance ministry, giving them licence to spend a record budget surplus, and embracing their demands for European reform.

The agreed hike in additional state spending is likely to boost domestic demand even further and help to reduce the still large trade surplus also in the coming years. ($1 = 0.8140 euros) (Reporting by Michael Nienaber; Editing by Paul Carrel and Matthew Mpoke Bigg)</s>BERLIN, Feb 8 (Reuters) - Germany’s trade surplus fell in 2017 for the first time in eight years, data showed on Thursday, in a further sign that vibrant domestic demand is sucking in more imports and slowly re-balancing the country’s export-oriented economy.

The seasonally unadjusted trade surplus went down to 244.9 billion euros ($300.86 billion) from the record-high of 248.9 billion euros in the previous year, according to the Federal Statistics Office.

The wider current account surplus, which measures the flow of goods, services and investments, edged down to 257.1 billion euros from 259.3 billion euros in the previous year.

In December alone, seasonally adjusted exports rose by 0.3 percent on the month while imports rose by 1.4 percent, the data from the statistics office showed.

The exports figure beat expectations for a 1.0 percent fall while imports also came in stronger than the forecast for a 0.5 percent decrease.

The seasonally adjusted trade surplus in December narrowed to 21.4 billion euros. This was smaller than the Reuters consensus forecast for a surplus of 21.7 billion euros. ($1 = 0.8140 euros) (Reporting by Michael Nienaber; Editing by Paul Carrel)</s>Germany's trade surplus shrank for the first time since 2009 last year as imports outpaced exports in Europe's booming top economy, giving Berlin ammunition to ease criticism of its huge trade gap with other countries.

The country's trade surplus unexpectedly fell to 245 billion euros ($300 billion) from a record 249 billion in 2016, figures from federal statistics authority Destatis showed.

Germany routinely comes under fire over its massive trade surplus, with partners from Paris to Washington urging the government to address the chronic imbalance by doing more to encourage consumption at home, indirectly boosting other nations.

In what may go some way to silencing those complaints, Destatis said imports soared by 8.3 percent last year to an all-time high of 1.03 trillion euros.

It marks the first time German imports have breached the psychologically significant trillion-euro barrier, and comes as the economy is humming, wages are high and unemployment is lower than ever.

But Germany's exporters are also on a roll, benefiting from a robust global recovery.

Exports shot up 6.3 percent to 1.3 trillion euros last year -- another fresh record.

"It's the typical German success story when it comes to exports," analyst Carsten Brzeski of ING Diba bank told AFP.

The latest snapshot of the country's trade balance could make it easier for German policymakers to counter criticism of its massive surplus, he said.

"They can say: this is what you have been arguing for," said Brzeski.

But insatiable appetite for German goods abroad means the irritation is likely to persist.

"For the critics, the reduction is far too little," he said. "I expect the country will still have extremely high trade and current account surpluses in 2018."

The 2017 figures showed that German demand was strongest for goods made inside the European Union, but there was also a nine-percent jump in imports from the rest of the world, including the United States.

Most of Germany's goods sold abroad meanwhile were bought by fellow EU member states, accounting for some 750 billion euros, up 6.3 percent on 2016.

Looking ahead, observers say the recent strength of the euro may put the brakes on exports in coming months, as a stronger currency makes German goods more expensive abroad.

But Brzeski said exporters are unlikely to suffer much.

"German exports have always proven to be resistant to a strong euro," he said.

He added however that the euro's rise against the dollar in particular means Germany may "feel some negative impact" in its bilateral trade with the US.

US President Donald Trump has been among the most vocal opponents of Germany's surpluses, calling his country's trade deficit with Germany "unfair" and wondering aloud why there are so many German cars on American roads.

But he is far from alone.

European partners and global institutions like the International Monetary Fund have long urged the German government to spend and invest more to push up demand and boost growth in other regions.

German officials argue that the trade surplus reflects the strength of the "made in Germany" brand and insist there is little they can do to influence the spending of companies and individuals.

But those arguments have done little to stop the grumbling. Just last month, IMF chief Lagarde called on Berlin to relax its cherished budgetary discipline and help "reduce global imbalances".

Those pleas have perhaps not fallen on deaf ears.

The coalition pact unveiled by Chancellor Angela Merkel's would-be new government on Wednesday reaffirmed Berlin's commitment to a balanced budget, but also pledged billions of euros in extra spending on education, childcare and internet infrastructure.

Critics will also be cheered by rising salaries in Europe's powerhouse, with Destatis announcing that real earnings grew 0.8 percent in 2017.

The country's most powerful union IG Metall, which represents nearly four million workers, this week won a 4.3-percent pay increase from employers, setting the tone for similar wage hikes in other industries.</s>Both exports and imports were up by 2.5% in December 2017 in euro terms, compared to the same month of the previous year, according to a first estimate of monthly data for the external trade in goods released by the Central Statistical Office (KSH). The trade surplus increased by EUR 12 million in December.

Turnover may have been influenced by the fact that the number of working days was two fewer in December 2017 than a year earlier, noted the KSH.

In December 2017, the value of exports amounted to EUR 7.46 billion and that of imports to EUR 6.96 bln. The monthly trade surplus was EUR 502 million.

The share of European Union Member States was 77% in exports and 76% in imports, the KSH added.

In 2017 as a whole, exports were up by 8.4% and imports by 11.1%, and the trade surplus was nearly EUR 8.24 bln over the year, some EUR 1.49 bln less than the surplus in 2016.

A second, more detailed estimate of data for the external trade in goods in December, and for the full year of 2017, will be published by the KSH on March 2.</s>The current account surplus expanded to a 10-year high of ¥21.87 trillion in 2017, lifted by solid earnings from foreign investments and a record-high travel surplus, government data showed Thursday.

The 7.5 percent year-on-year rise in the current account — one of the widest gauges of international trade — also came as Japan benefited from accelerating export growth. But a surge in energy imports to the resource-poor country weighed on the trade surplus last year, according to a preliminary report by the Finance Ministry.

The nation’s current account surplus stood at ¥24.95 trillion in 2007 before the global financial crisis touched off by the collapse of the U.S. housing market.

The surplus in the primary income account, which reflects how much Japan earns from foreign investments, came to ¥19.74 trillion, up 9.1 percent from 2016.

“One of the main reasons is that the primary income account saw increased dividends received from overseas subsidiaries,” said a ministry official.

As the number of tourists hit another record high in 2017, Japan’s travel surplus also climbed to its highest level, expanding to ¥1.76 trillion from ¥1.33 trillion a year ago.

Japan had a trade surplus for the second straight year at ¥4.93 trillion, though it marked a 10.8 percent year-on-year drop as exports rose 11.9 percent to ¥77.20 trillion while imports grew 13.9 percent to ¥72.26 trillion.

Global economic growth helped push up Japan’s exports, particularly semiconductor-related equipment to Asia and cars to the United States.

Trade has become a sensitive issue with U.S. President Donald Trump pushing for “free and fair” trade, taking issue with his country’s trade deficits with exporters such as Japan and China.

Economists say the global economy will likely remain on a solid footing, but uncertainty remains after global stocks took a beating earlier this week as investors dumped risky assets.

“Japan’s current account and trade surpluses stood at high levels as economic conditions were good last year. In this sense, whether the trend will continue depends on overseas economies,” said Yasutoshi Nagai, chief economist at Daiwa Securities Co.

Nagai said the recent global stock plunges are not indicative of deteriorating economic conditions down the road. “I don’t think we have to be overly pessimistic but the country’s trade balance may swing to a deficit if the outlook worsens.”

The services balance, including passenger transportation and royalties, came to a deficit of ¥706.1 billion, much smaller than 2016’s ¥1.15 trillion in red ink.

In December, the current account surplus shrank 28.5 percent from a year ago to ¥797.2 billion, but Japan managed to stay in the black for the 42nd month in a row.

Rising energy imports squeezed the trade surplus while increased dividend payments led to a smaller surplus in the primary income account than a year ago, the ministry data showed.</s>Beijing, China /AFP/. China's global imports soared and exports remained strong in January, while its trade surplus with the United States narrowed after reaching record levels last year, official data showed Thursday.



Imports for the month surged 36.9 percent year-on-year, pointing to robust demand in the world's number two economy to start the year.



China's continued economic strength flies in the face of the authorities' campaign to limit credit growth and reduce winter pollution by cutting industrial production.



The wave of imports -- buoyed by rising commodity prices -- greatly surpassed analyst estimates of 10.6 percent growth for the period, according to Bloomberg News.



Analysts attributed part of the rise to the Chinese New Year holiday falling in February this year, as opposed to January last year.



Even so, the "outturn exceeded expectations," wrote Julian Evans-Pritchard, China economist at Capital Economics.



China's exports remained strong as well, posting 11.1 percent growth for the month, beating analyst expectations of 10.7 percent.



The humming global economy continues to eat up China's products, giving its leaders more time to achieve their goal of transitioning the economy from one driven by exports and investment to a more stable model propelled by domestic consumption.



China's trade surplus with the US dropped from $25.6 billion in December to $21.9 billion in January. The figure is roughly equal to the trade surplus China posted with the US in the same period last year.



The falling surplus is good news for Beijing, which has been under attack by US President Donald Trump for months.



Still analysts worry the large deficit will compound sensitive trade relations between the two countries.



"The uncertainty surrounding Sino-US trade ties remains a key potential downside risk in the near term," said Betty Wang, senior China economist at ANZ bank.



Earlier this week, the US Commerce Department reported the US trade deficit surged to $375.2 billion during Trump's first year in office, its highest level in nearly a decade.



China's calculations for last year, released in January, differ, showing a trade difference of $275.8 billion -- still a record high.



The Trump administration has aimed to reduce the deficit by levying aggressive tariffs on a variety of Chinese goods.



Last year, China held off from taking tit-for-tat measures, but Beijing has indicated it may not practise the same restraint in coming months.



This week China launched an anti-dumping investigation into sorghum imports from the US, which the US shipped China almost $1 billion of last year.



That was a sliver of the $14 billion in US soybean imports, which analysts forecast could be in China's crosshairs as well.



"We cannot exclude the possibility that China may retaliate by focusing on the US' agricultural exports, including soy exports," ANZ's Wang wrote.</s>China expressed concern on Thursday over the US ramping up trade investigations as official data showed its surplus with America narrowed in January after reaching record levels last year.

This week China announced an investigation into imports of a US agricultural product after President Donald Trump's administration launched a spate of new trade tariffs and probes into Chinese goods.

The Trump administration has shown no signs of letting up, with major decisions looming on Chinese aluminium, steel and intellectual property practices.

The tensions are raising the spectre of a tit-for-tat trade war between the world's two largest economies.

"There has been an upward trend in US investigative organs looking into China's products and launching trade relief cases," said Ministry of Commerce spokesman Gao Feng during a press conference.

"China is worried about this."

The US imposed new tariffs on Chinese-made solar panels and washing machines this year after hitting aluminium foil and plywood last year.

China has so far held off from retaliating by adding new tariffs on US imports, but Beijing has indicated it may not show such restraint for much longer.

This week China initiated an anti-dumping investigation into sorghum imports from the US, worth almost $1 billion last year.

That was a sliver of the $14 billion in US soybean imports, which China hinted could be in its crosshairs as well. It was America's largest export to China last year.

Gao did not deny reports Chinese authorities were looking into soybean and cotton imports, after a journalist from state news agency Xinhua asked about reported meetings regarding the two items over anti-dumping and anti-subsidy issues.

"Recently we did hold a symposium with enterprises that import and export agricultural products," Gao said, noting it was to "understand the operation of foreign trade in agriculture".

Though Gao denied it was connected to "Sino-US trade frictions", he said "related agricultural companies did indeed mention issues in the Sino-US agricultural product trade" with some producers "expressing concerns about the impact of imported agricultural products".

Official data released by China's General Administration of Customs may relieve some pressure generated by its vast trade surplus with the US.

It reached record highs during Trump's first year in office -- $375.2 billion by US counting, or $275.8 billion according to Chinese data.

In January, China's trade surplus with the US dropped to $21.9 billion, from $25.6 billion in December. The figure is roughly equal to the surplus China posted with the US in January 2017.

Still, analysts worry the persisting deficit will compound sensitive trade relations between the two countries.

"The uncertainty surrounding Sino-US trade ties remains a key potential downside risk in the near term," said Betty Wang, senior China economist at ANZ bank.

There is a large gulf between the two sides on how they view the massive deficit.

"Generally Sino-US trade interests are relatively balanced," Gao said, after explaining the gap shrinks when considered on a value-added basis.

Beyond the risks in the US-China trade relationship, official data on Thursday showed China's imports soared and exports remained strong in January.

Imports for the month surged 36.9 percent year-on-year, pointing to robust demand in the world's number two economy to start the year.

China's continued economic strength flies in the face of the authorities' campaign to limit credit growth and reduce winter pollution by cutting industrial production.

The wave of imports -- buoyed by rising commodity prices -- greatly surpassed analyst estimates of 10.6 percent growth for the period, according to Bloomberg News.

Analysts attributed part of the rise to the Chinese New Year holiday falling in February this year, as opposed to January last year.

Even so, the "outturn exceeded expectations", wrote Julian Evans-Pritchard, China economist at Capital Economics.

China's exports remained strong as well, posting 11.1 percent growth for the month, beating analyst expectations of 10.7 percent.

The humming global economy continues to eat up China's products, giving its leaders more time to achieve their goal of transitioning the economy from one driven by exports and investment to a more stable model propelled by domestic consumption.</s>LJUBLJANA (dpa-AFX) - Slovakia's foreign trade balance turned to a surplus in December from a deficit in the previous year, data from the Statistical Office of the Slovak Republic showed Thursday.



The trade surplus came in at EUR 8.5 million in December versus a deficit of EUR 136.7 million in the same month of 2016. 



In November, it was a surplus of EUR 496.0 million.



Both exports and imports grew by 5.3 percent and 2.5 percent, respectively in December from a year earlier.



Copyright RTT News/dpa-AFX
Germany's trade surplus shrank in 2017 for the first time since 2009, reflecting strong domestic demand.