German exports rose more strongly than expected in April while imports posted an even bigger increase. This helped narrow the trade surplus. Seasonally adjusted exports were up 0.9 per cent on the month while imports jumped 1.2 per cent.

Germany’s robust economic upswing is likely to continue. Domestic demand has replaced exports as the main growth driver in Germany as consumers and the state are benefiting from falling unemployment, rising tax revenues and record low borrowing costs.

The German economy grew by 1.9 per cent in 2016, the strongest rate in half a decade, helped by soaring private consumption, higher state spending and increased construction. In the first quarter of 2017, the economy picked up further speed as exports also helped to drive growth.

Germany is Europe’s biggest economy. The seasonally adjusted trade surplus edged down to 19.8 billion euros from a revised 19.9 billion euros in March. The country’s wider current account surplus, which measures the flow of goods, services and investments, plunged to 15.1 billion euros after a revised 31.1 billion euros in March. The German central bank has increased its growth forecasts of 1.9 per cent in 2017, 1.7 per cent in 2018 and 1.6 per cent in 2019.