China becomes world's largest exporter

China exported goods worth $521.7bn (?364.9bn, £318.1bn) in the first six months of this year, while Germany’s total was $521.6bn, the Geneva-based World Trade Organisation reported.

Such export figures are closely followed in Germany, Europe’s largest economy, which has national elections next month.

Sales of its industrial products have largely powered the economic growth in recent years, and throughout the economic crisis the government of Angela Merkel, chancellor, has strongly defended the country’s export-driven economic model.

Germany has long been braced for the much faster-growing Chinese economy to assume its “world export champion” title.

However, the likely value of German and Chinese exports for the full year remains uncertain and will depend heavily on exchange rate movements in coming months. A strong euro would help flatter Germany’s figure. Germany’s export businesses have also shown signs of reviving in recent months.

“It is too close to say for the whole year and who knows for next year,” said Patrick Low, the WTO’s chief economist.

Germany’s exports were badly hit by the collapse in global confidence that followed the failure of Lehman Brothers investment bank last year.

But signs of a strong recovery have emerged. In June, the latest month for which data are available, German exports leapt by 7 per cent compared with the previous month. Nevertheless they were still 22.3 per cent lower than a year before.Chinese exports have followed a similar pattern.

The surge in exports helped explain why Germany was able to report a rise in gross domestic product in the second quarter, compared with the previous three months – meaning it emerged from recession ahead of the US, the UK and most of the other large European economies.

In turn, Germany’s rebound is helping lift the overall performance of the eurozone. Eurozone industrial orders surged by 3.1 per cent in June compared with the previous month, according to data on Monday from Eurostat, the European Union’s statistical office.