I have a simple Flask application with the following structure:
|__app     
|  └── __init__.py
|  └── config.py
└── docker-compose.yml
└── Dockerfile
Key here is that __init__.py imports config.py. I use docker-compose to run the application in a container in DEBUG mode, while the end product is a container solely build from the Dockerfile.
The __init__.py file:
from flask import Flask
from .config import config
def create_app(config_name='development'):
    """Create the app."""
    app = Flask(__name__)
    app.config.from_object(config[config_name])
    @app.route('/', methods=['GET'])
    def index():
        return 'hello world' 
    return app
The Dockerfile builds the application in a docker container:
FROM python:3.6-alpine
COPY requirements.txt /
RUN pip install Flask gunicorn
COPY app/ /app
WORKDIR /app
EXPOSE 8000
CMD gunicorn --bind=0.0.0.0:8000 "__init__:create_app()"
The docker-compose.yml is used for development: it shares the app directory so it enables the app to run in DEBUG mode:
version: '3'
services:
  svc1:
    build: .
    entrypoint:
      - flask
      - run
      - --host=0.0.0.0
    environment:
      FLASK_DEBUG: 1
      FLASK_APP: __init__.py
    ports: ['5000:5000']
    volumes: ['./app:/app']
In the main folder you can run the application in debug mode with docker-compose up --build -d and you navigate to localhost:5000  it returns "hello world".
But if you build the image with docker build -t exampleapi . and run the image it complains:
File "/app/init.py", line 3, in module
from .config import config
ImportError: attempted relative import with no known parent package
 
     
    