German exports\, imports drop more than expected in February

A dismal day for Europe's economic powerhouse in the latest sign that Germany is taking the headwinds from the frosty global economic climate.

Germany's imports and exports fell more than expected in February, the Federal Statistics Office said on Monday (April 8).

Exports had their biggest drop in 12 years, down 1.3 percent on the month, while imports fell 1.6 percent.

And a Reuters poll of economists said, the trade surplus is expected to narrow to around $20 billion.

Last week, data also showed industrial orders fell by the biggest margin in more than two years in February.

German exporters are suffering from a slowing world economy, trade disputes and Brexit uncertainty.

From the numbers, Germany could be seen to be on the brink of recession, which it narrowly avoided at the end of last year, but others are slightly more optimistic.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "There is a good chance that Brexit will get an extension which would add calm and I think there will be a deal between the United States and China.

Of course we know that once we have a U.S.-China deal, the next big obstacle will be the trade dispute between the U.S. and Europe." The German government will update its growth forecast later this month.

Berlin said in January it expected the economy to grow by 1 percent this year.