German exports posted their biggest fall in nearly a year in March and imports also dipped as the crisis in Ukraine and a slowdown in China weighed, narrowing the trade surplus and confirming trade was a drag on growth at the start of 2014.

Figures from the Federal Statistics Office showed seasonally-adjusted exports slipped 1.8 per cent on the month, their second consecutive fall, and imports dipped 0.9 per cent, pushing the trade surplus down to €14.8 billion.

The seasonally adjusted trade balance compared with a surplus of €15.8 billion in February. Economists had expected a surplus of €16.6 billion in March.

“As already reflected in other industrial data, March saw a stronger real economic impact from the Ukrainian crisis and the Chinese slowdown than confidence indicators had suggested,” said ING economist Carsten Brzeski. In the first two months of 2014, German exports to Russia dropped by 16 per cent. Detailed data for March will not be available until later in the month.