German exports exceed expectations with 2% growth in September, supported by European demand

Last September, German exports rose by 2 percent, compared to the previous month, exceeding expectations, driven mainly by demand from European Union countries, according to data from the Federal Statistical Office, issued on Monday.

Analysts polled by Reuters had expected exports to rise by 0.5 percent, after declining for two consecutive months in August and July.

Alexander Krueger, chief economist at Bitman Hall, said that the data raises optimism about the performance of the German economy in general, as it shows a degree of flexibility in the face of Chinese competition.

He added: “Foreign trade is likely to support economic growth at the present time, but it will not be its main driver.”

In contrast, German imports rose by 4.2 percent on a monthly basis, exceeding economists' expectations for an increase of 0.5 percent.

On Monday, euro zone finance ministers are considering two nominations to succeed European Central Bank President Christine Lagarde, but they are unlikely to make a recommendation in this regard at the present time, pending European Union leaders reaching an agreement.

Lagarde is scheduled to leave her position on February 7, nine months before the end of her term, which narrows the time frame for choosing a successor, especially since leaders are also required to decide on two other appointments to the Executive Board of the European Central Bank in the coming months, according to Reuters.

The two candidates to succeed Lagarde are former Dutch Central Bank Governor Claes Nott, and Pablo Hernandez de Cos, head of the Spanish Bank for International Settlements.

Under EU rules, euro zone finance ministers must recommend a candidate, who then undergoes a hearing in the European Parliament, before EU leaders make a final appointment. The Union governments seek to complete this process by the end of the year.

“We realize that we have to act quickly,” Kyriakos Petrakis, head of the group of eurozone finance ministers, told reporters as he entered the meeting. But what was usual in the past was for this decision to be led by leaders. Today’s meeting will be primarily dedicated to exchanging information and discussion.”

In addition to succeeding Lagarde, leaders must agree on who will succeed Isabel Schnabel, who is in charge of market operations at the European Central Bank, whose term ends on January 3, 2027, and chief economist Philip Lane, whose term ends in May 2027.

Officials said that the three positions may be the focus of negotiations between the largest eurozone countries, namely France, Germany, Spain and the Netherlands, within one settlement.

Petrakis added: “This may make things easier, but the decision will be taken again at the level of European Union leaders.”

Dutch Finance Minister: The competence of the candidate is the basis of selection

Dutch Finance Minister Elko Heynen said on Monday that the selection of the next president of the European Central Bank should be based on merit and competence, and not be the result of political negotiations or an exchange of interests.

Heinen added, before a meeting with his counterparts in the euro zone countries, during which he intends to present his country’s candidacy to former Dutch Central Bank Governor Claes Knott, that the latter has an “excellent” professional record in his previous position, in addition to his experience in crisis management.

Nott is considered one of the candidates to succeed Lagarde, along with former Spanish Central Bank Governor Pablo Hernandez de Cos.

Heinen did not comment on the qualifications of the Spanish candidate, but he stressed the need for countries not to view the competition for the presidency of the European Central Bank as a conflict between northern and southern European countries, or an opportunity to obtain concessions on other files, such as the multi-year budget of the European Union.

The Spanish Minister of Economy supports De Cos' candidacy

For his part, Spanish Economy Minister Carlos Cuerbo expressed, on Monday, his optimism about the selection of Pablo Hernandez de Cos as the next president of the European Central Bank.

Cuerbo told reporters that De Cos has professional qualifications that qualify him for the position, including nearly 30 years of experience in the field of central banking, his ability to build consensus, as well as his display of leadership skills during his presidency of the Central Bank of Spain.

On Monday, the head of the Russian Central Bank, Elvira Nabiullina, opposed rushing to cut the key interest rate, but indicated that the risks of a renewed inflation acceleration would soon decline, making room for a possible rate cut.

Nabiullina's statements came during a speech she delivered before the Russian Parliament, at a time when the Central Bank kept the key interest rate at 14 percent, during its meeting last month, for the second time in less than two months, according to Reuters.

The bank also raised its inflation expectations in 2026 to a range between 7.1 and 7.6 percent, compared to its previous estimates that ranged between 6 and 7 percent, while aiming to reduce inflation to 4 percent.

The Central Bank is scheduled to hold its next meeting to discuss the level of the key interest rate on December 18.