Jan 8 Reuters German exports rose much more than expected in November as demand in the European Union increased strongly, data from the federal statistics office showed on Monday.

German exports rose by 3.7 in November compared with the previous month. The result followed a forecast of a 0.3 increase in a Reuters poll.

While an increase is better than another decrease, these November improvements are a technical improvement after a long stretch of disappointing data rather than signs of a substantial turnaround, said Carsten Brzeski, global head of macro at ING.

Imports rose by 1.9 from October, the federal statistics office reported, versus analysts expectations of a 0.2 rise.

Exports to EU countries rose by 5.4 compared with the previous month, while exports to countries outside the EU went up 1.8, the office said.

Supply chain frictions, a more fragmented global economy and China moving from a dynamic export destination to competitor are all factors weighing on the German export sector, Brzeski said.

The cooling of global demand and the war in Gaza with tensions in the Suez Canal are worsening the structural problems, he said.

Like the rest of the German economy, exports remain stuck in the twilight zone between recession and stagnation, Brzeski said.

The foreign trade balance showed a surplus of 20.4 billion euros 22.3 billion in November, versus a surplus of 17.7 billion euros the previous month.

1 0.9136 euros

Reporting by Tristan Veyet in Gdansk and…