| Reuters
Data from the Federal Statistics Office on Tuesday showed imports sliding 3.8 percent, undercutting even the lowest estimate in a Reuters poll of economists. The consensus forecast had been for imports to rise 0.5 percent.
Exports, which had been expected to remain unchanged, dropped 1.5 percent, underscoring how weakness in Germany's key European partners is affecting demand for its goods. Exports have fallen in three of the last six months.
"The hope was that German domestic demand would support the economy, not just its own but also that of the rest of the euro zone, and especially crisis countries, via imports," said Christian Schulz at Berenberg Bank.
"But the German economy is not yet playing the role that it could play in terms of European rebalancing," said Schulz. "Domestic demand still seems to suffer from lack of confidence due to certain uncertainties surrounding the euro crisis."
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