German exports continued to make a strong contribution to economic growth in July, with exports rising 12 per cent on the year to 81.5 billion euros (115 billion dollars), the federal statistics office said Friday, DPA reported. Analysts predicted exports would boost growth in the third quarter, expected to come in at 0.7 per cent. Growth slowed to just 0.3 per cent in the first quarter, as a result of fall-off in the building sector. "The export trend is clearly upwards," Commerzbank economist Ralph Solveen said. But he warned that the strong euro and a slowing of the global economy could affect German exports. "In 2007 and 2008, there won't be the kind of growth rates above 10 per cent that we saw last year," he said. July imports also grew, rising 6 per cent to 63.6 billion euros. The balance of trade for the first seven months of the year was in surplus to the tune of 115.5 billion euros. Germany is the world's largest exporter and runs a consistent trade surplus. The surplus on the current account for the first seven months was 86.9 billion euros, according to the statistics office in Wiesbaden. Also on Friday, the Economics Ministry released manufacturing production figures showing a rise of 0.1 per cent on the month in July, adjusted for price and season. The ministry attributed the small rise to more holidays than usual in the month. Analysts had expected a sharper rise, by around 0.8 per cent. The ministry adjusted the decline in June to 0.2 per cent from 0.4 per cent previously. Over the months June-July, manufacturing industry production rose 4.9 per cent on the year, with industry rising 6.1 per cent, while construction fell 3.4 per cent. "The upward trend in manufacturing industry continues, with the economically significant industrial production sector making a considerable contribution," the ministry said in Berlin. "The prospects for dynamic development in industrial production remain good," it added.
