The seasonally adjusted merchandise trade balance was in a €22.1 billion surplus in April, little changed from March's marginally smaller revised €22.2 billion. Unadjusted, the surplus stood at €23.6 billion, up from the €15.3 billion posted in April 2023.

The broadly stable headline reflected a 1.6 percent monthly rise in exports that was essentially offset by a 2.0 percent gain in imports. This was the third increase in exports in the last four months and was largely attributable to a 2.0 percent rise in sales to other EU countries and a 15.4 percent spurt in UK purchases. Imports have risen for four months in a row. Unadjusted annual growth of the former climbed from minus 8.1 percent to 12.3 percent and of the latter, from minus 9.3 percent to 6.6 percent.

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.