The export expectations of the industry in Germany had recently increased.
(Photo: dpa)
Wiesbaden German exports took a hit in November 2022. Exports fell by 0.3 percent compared to the previous month, adjusted for calendar and seasonal effects, as the Federal Statistical Office announced in Wiesbaden on Thursday. Imports of goods fell by 3.3 percent. Business in the USA and China in particular was worse, and trade with member states of the European Union (EU) also weakened.
The picture is significantly better in a year-on-year comparison. According to the Wiesbaden authorities, goods worth 135.1 billion euros were exported from Germany in November. That was 13.3 percent more than a year earlier. Imports rose within a year by 14.7 percent to 124.4 billion euros.
According to a survey by the Ifo Institute, the German export industry was recently cautiously optimistic again. The export expectations of the companies surveyed rose to plus 1.6 points in December, from plus 0.9 points in November. The automotive industry continues to expect significant growth. The electrical industry also sees more opportunities in foreign business, explained Ifo President Clemens Fuest. On the other hand, the chemical industry and the metal sector assume that export sales will decline.
Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade and Services (BGA), recently told the Reuters news agency that there would be no slump in exports in 2023. At the same time, however, no high-altitude flight is to be expected. “It would be a success if we actually managed to break even.”
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The chief economist at Hauck Aufhäuser Lampe Privatbank, Alexander Krüger, considers the drop in exports to be “easily manageable” at the high level. Since China and the USA are weakening, export momentum will remain rather subdued for the time being. A ray of hope comes from reduced material bottlenecks. Overall, the export sector supports the prospect of only a mild recession in Germany.
More: Business confidence in German companies in China is at a “historic low”