Sharp drop in German, French exports casts pall on eurozone

Frankfurt

THE economic skies above the eurozone darkened again on Thursday as data showed a sharp drop in exports from its two biggest economies, Germany and France.

German exports contracted by a massive 5.8 per cent in August - the steepest drop since January 2009 - causing the trade surplus to shrink to 17.5 billion euros (S$28.3 billion).

In neighbouring France, exports dropped by 1.3 per cent, pushing the trade deficit up to 5.8 billion euros, the highest figure since January.

France's big trade deficit is worsening with the United States and with Asia, notably because of a decline in A…