(eToro Blog ) The components of the European markets continue to diverge and are reflected in the strength of the German economy relative to peripheral economies. Yesterday's economic data displays the overall strength of the German market. German exports surged above their pre-crisis level to set a record after rising more than 7 percent in March.

The rapid rise of export growth highlighted the strength of Europe's largest economy. Germany's growth spurt should help boost the overall euro zone performance, but most will observe a Europe that has weak performance in countries such as Spain, Greece, Portugal and Ireland.

German exports totaled €98.3bn in March, almost 16 per cent higher than the same month in 2010, according to the federal statistics office. That was the highest monthly total since the data started to be compiled in 1950.

The rapid pace of German exports might not last long. German industrial orders fell 4 per cent in March, with export orders falling faster than domestic orders. Economists expect German growth to slow later this year in the face of higher oil prices, fiscal austerity in much of Europe, higher European Central Bank interest rates, and worries created by geopolitical tensions in north Africa and the Middle East.

Euro zone policymakers hope the growth spurt will broaden into stronger domestic demand. German consumer spending has shown few signs of springing into life. Retail sales fell by more than 2 per cent in March. German imports, which at €79.4bn in March were 16.9 per cent higher than a year earlier, have also set a fresh monthly record. But the rise largely reflected higher oil prices.

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