FRANKFURT: German exports bounced back in October from a slump caused by global supply chain bottlenecks, official data showed on Thursday, but analysts warned that the emergence of the Omicron coronavirus variant could cast a shadow over recovery prospects.

Europe’s largest economy exported 121.3 billion euros’ ($137.4 billion) worth of goods in October, 4.1 per cent more than in the previous month, according to seasonally adjusted figures compiled by the federal statistics agency, Destatis.

On a 12-month basis, exports were up 8.1 per cent to back above the pre-coronavirus crisis levels of February 2020, the statisticians calculated.

The strong performance made it more likely that Germany would be able to “avoid a mini-recession at the end of this year due to the fourth wave of the coronavirus” which has swept the country, said Sebastian Dullien, director of the IMK economic research institute.

The data suggested that the supply issues that have troubled industry in recent months were “gradually easing”, Dullien said.

Shortages of materials and components have put the brakes on German industry, with the auto sector particularly hard hit.

Nevertheless, the spread of the Omicron variant — which is believed to be much more contagious — increased the risk of “factory closures in Asian countries and renewed difficulties in the supply of components”, Dullien cautioned.

Exports to China, an important trading partner for Germany, were up by 8.5 per cent year-on-year in October, the Destatis data showed.

Exports to EU countries were up 11.6 per cent, while exports to countries outside the bloc climbed by 4.1 per cent.

Germany imported 108.5 billion euros’ worth of goods in October, five per cent more than in the previous month, Destatis calculated.

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