German Exports surpass estimates.

Europe’s most dynamic economy has reported that exports have risen 200 percent faster than economists had estimated in January due to increased trading outside Europe.

The 3.8 percent increase from December represents the quickest growth rate since September 2006.

This is further evidence that Germany’s economy is stable despite the problems experienced in the US. Now that the euro has reached a record $1.5459 this is an indicator that this export growth may not continue.

Sales outside the European Union accounted for 30 billion euros, up 12 percent since January, whilst exports within the Union increased by 7.7 percent.

Rising demand from Russia and China has helped to offset the US slump, as exports to Russia alone increased by 21 percent.

This demand has coincided with the lowest unemployment levels for the last 15 years.

Landmark German products such as Adidas have experienced a fourth quarter profit increase of 63 percent, whilst luxury car maker Porsche experienced a 19 percent growth in the last six months which was supplemented by car sales in China and Russia.

Despite the current numerical success of German companies, exporters are still concerned with the euro’s 17 percent gain against the dollar.

After the European Central Bank’s President Jean-Claude Trichet said the bank is “concerned” about the currency’s appreciation the euro dropped to $1.5334 from $1.5355. He said that: “we’re concerned about excessive exchange-rate moves in the present circumstances.”

The International Monetary Fund announced last month that U.S. slowdown and a weaker world trade will reduce Germany’s current export growth.

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