From June to July of the current year, exports fell by 2.1 percent, as the Federal Statistical Office announced on Friday.
(Photo: dpa)
Wiesbaden, Berlin For German exporters, the second half of the year began with a setback due to falling demand from the world’s largest economies, the USA and China. Their exports decreased in July by 2.1 percent compared to the previous month to 131.3 billion euros, as the Federal Statistical Office announced on Friday.
Economists polled by Reuters had expected a slightly sharper decline of 2.3 percent after three consecutive increases. Imports also fell in July, by 1.5 percent to 125.9 billion euros. They had previously grown five months in a row.
“With its export-heavy industry, Germany feels every cough in the world economy,” commented the chief economist at VP Bank, Thomas Gitzel, on the development. “It is currently navigating difficult waters: a war is raging in Europe, in Asia the restrictions associated with the corona pandemic are still affecting economic development and inflation rates are reaching dizzying levels.”
The demand for goods “Made in Germany” fell particularly sharply in the USA, the most important customer of the German export economy. Here, exports fell by 13.7 percent compared to the previous month to 12.3 billion euros.
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Exports to the People’s Republic of China fell by 0.3 percent to 8.9 billion euros, while deliveries to Great Britain fell by 4.6 percent to 5.8 billion euros. Business with Russia fell by 15.1 percent to 1.0 billion euros due to sanctions resulting from the war against Ukraine. Bucking the trend, exports to the EU countries grew by 1.0 percent to 73.4 billion euros.
The mood among German exporters clouded over for the third month in a row in August in view of the global economic slowdown, as the Munich-based Ifo Institute found out in a survey of 2,300 companies. “The companies do not expect any dynamic development of their exports,” commented Ifo President Clemens Fuest on the development. “High gas prices and a weak global economic environment are weighing on the outlook.”
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