Frankfurt (Germany) (AFP) – German exports almost stagnated in October, official data showed Tuesday, as heavy declines in shipments to the United States and China eclipsed growing trade with the rest of Europe. Overall exports from Europe’s top economy rose 0.1 percent to 131.3 billion euros ($153 billion) from a month earlier, according to preliminary data from federal statistics agency Destatis.
Shipments to the United States — Germany’s top export market — plummeted almost eight percent as the effect of tariffs continues to exact a heavy toll. Exports to China fell nearly six percent, with demand weak as the Chinese economy battles a long slowdown and local companies increasingly compete with German firms in the key market. Total exports were slightly better than expected; however, analysts had forecast a decline as they were boosted by a near three-percent jump in sales to other European Union countries.
ING economist Carsten Brzeski warned, however, that exports “are still facing rough headwinds” due to shifting trading relationships with the United States and China. “So far, the European market looks unable to offset these global headwinds,” he said. “It currently requires a lot of imagination to see a quick return of the export sector as a powerful growth engine for the German economy.”
The German economy has been hit hard by an industrial slump and weak demand in key markets in recent years, and shrank in both 2024 and 2023. Most imports to Germany came from China in October, although they were down around five percent compared to September. China recently overtook the United States to reclaim its position as Germany’s top trading partner, as the country redirects more of its exports to Europe due to US tariffs.
Imports to Germany in October dropped 1.2 percent month-on-month to 114.5 billion euros. The trade surplus widened to 16.9 billion euros.
© 2024 AFP
