Exports to China also fell by 4.3 percent.
(Photo: dpa)
Berlin In the first month after the Russian invasion of Ukraine, German exports fell more than they had since the beginning of the corona crisis two years ago. In March they fell by 3.3 percent compared to the previous month to 120.6 billion euros, as the Federal Statistical Office announced on Wednesday. The last major decline was in April 2020, when the pandemic slowed down foreign trade.
Economists surveyed by the Reuters news agency had only expected a decline of 2.0 percent, after seasonal and calendar-adjusted growth of 6.2 percent in February. Imports, on the other hand, increased by 3.4 percent in March, after an increase of 4.7 percent in February.
“The decline in exports is also the result of the Ukraine war,” said the chief economist at Hauck Aufhäuser Lampe Privatbank AG, Alexander Krüger. “The March data here is the first where it really shows.”
Exports to Russia collapsed by 62.3 percent to just 0.9 billion euros due to the sanctions and other export restriction measures. Imports from Russia, on the other hand, fell by only 2.4 percent to 3.6 billion euros. Germany mainly imports oil and natural gas from Russia.
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German exports to EU member states shrank by 1.7 percent in March. On the other hand, exports to the most important customer, the USA, grew by 3.2 percent, while those to China fell by 4.3 percent to 9.1 billion euros. The People’s Republic is currently fighting a new corona wave with rigid measures. Business with Great Britain also fell, by 3.9 percent.
According to a survey by the Ifo Institute, the mood among German exporters recovered somewhat in April from the slump in the previous month. The barometer for expectations of foreign business climbed to plus 3.5 points after minus 2.9 points in March.
“Despite the high level of uncertainty and logistical problems, there are currently signs that the export climate is stabilizing,” said Ifo President Clemens Fuest. Accordingly, many companies are assuming rising export earnings.
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