The seasonally adjusted merchandise trade surplus weighed in at €22.3 billion in March, up from February's unrevised €21.4 billion. Unadjusted, the surplus stood at €23.9 billion, just slightly short of the €24.3 billion posted in March 2023.

The monthly headline improvement reflected stronger exports which rose 0.9 percent and so easily outpaced a 0.3 percent increase in imports. However, on the year, exports were still down an unadjusted 8.3 percent while imports were off a steeper 9.6 percent.

The trade balance remains in a very healthy surplus and total exports provided a boost to first quarter real GDP growth.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.

Imports indicate demand for foreign goods and services in Germany. Exports show the demand for German goods in countries overseas. Given the size of the German economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.