The EU area in particular is weakening
German exports in February worse than expected
April 8, 2024, 10:03 a.m
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Due to the global economy, economists are already forecasting a decline in German exports for February. Now it is clear that the minus is even bigger. Deliveries to the USA in particular are booming. However, deliveries to China and EU countries are looking weak.
Business for German exporters went surprisingly poorly in February due to falling demand from Europe and China. Their exports fell by 2.0 percent compared to the previous month to 132.9 billion euros, as the Federal Statistical Office announced. Economists surveyed by the Reuters news agency had only expected a decline of 0.5 percent. In January, exports rose by a strong 6.3 percent.
Imports, on the other hand, rose surprisingly by 3.2 percent in February, the second month in a row. Observers had assumed a minus of 1.0 percent. However, imports fell by 8.7 percent to 111.5 billion euros within one year.
The global economic environment remains “challenging” for the export-dependent German economy, said LBBW economist Jens-Oliver Niklasch in view of this development. Business with the EU member states was particularly bad in February: exports there fell by 3.9 percent to 72.9 billion euros. Exports to countries outside the EU, on the other hand, rose slightly by 0.4 percent to 60.0 billion euros.
Sharp increase in imports to the USA
The USA remained the most important buyer of goods “Made in Germany”. Business with the world’s largest economy grew by 10.2 percent to 13.8 billion euros. Exports to China, on the other hand, fell by 0.6 percent to 8.0 billion euros, while those to Great Britain fell by 2.0 percent to 6.6 billion euros.
However, the mood in the German export industry brightened significantly in March, which gives experts hope for better developments. The barometer for export expectations rose to minus 1.4 points, from minus 7.0 points in February, as the Munich-based IFO Institute found in its company survey. This is the second increase in a row and the highest value since May 2023. “World trade is likely to pick up in the coming months,” said the head of the IFO surveys, Klaus Wohlrabe, commenting on the development. “The German export industry hopes to benefit from this.”