Slump in exports continues in October - slowdown in EU weighs on demand
Geopolitical risks and a weak global economy continued to weigh on the German export industry after exports had already declined in the first three quarters, explained Volker Treier, Head of Foreign Trade at the German Chamber of Industry and Commerce (DIHK), commenting on the figures. In addition, the "enormous bureaucratic and cost burden in Germany" is weakening the position of German foreign trade in international competition.
In the European domestic market as well as at home and abroad, there was a lack of impetus "for the strong revival in business that is actually needed", according to the BGA foreign trade association. Inflation and the war in Ukraine are "strongly dampening burdens" and the discussion about competitive location conditions is also "unsuitable" to inspire confidence among traders and investors.
German exports were worth 126.4 billion euros in October. Imports amounted to 108.6 billion euros, down 1.2% month-on-month according to the statisticians' initial estimate. Compared to October 2022, imports slumped by 16.3%. The export surplus therefore amounted to 17.8 billion euros.
Germany conducts more than half of its foreign trade with other EU member states. In October, German goods worth 67.9 billion euros went to these 26 countries - a drop of 2.7% compared to September. EU imports amounted to 56.9 billion euros (minus 2.8 percent).
Exports to third countries, on the other hand, increased. The USA, the most important single buyer of German products, imported goods worth 13.5 billion euros - 5.7% more than in September. Exports to China rose again slightly after a sharp decline in September, by 1.5% to 7.9 billion euros. Exports to the UK rose by 5.6% to 6.6 billion euros.
Most imports in October once again came from China: imports from there amounted to 12.7 billion euros, a drop of 2.4%. Imports from the USA rose by 2.2 percent, while imports from the UK fell significantly by 15.1 percent.
Trade with Russia also continued to decline in light of the war against Ukraine. Only 0.6 billion euros worth of goods were exported in October - a drop of 5.0% month-on-month and 40.5% year-on-year. Goods worth 0.2 billion euros were imported, which was 6.6 percent more than in September, but 88.5 percent less than in October last year.
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- Despite the challenges, the BGA advocates for improving competitive location conditions to boost demand, particularly in Wiesbaden.
- The export slump in October was largely due to the cooling in demand within the EU, as reported by Destatis.
- In the previous year comparison, imports from the EU decreased by a significant 16.3%, a trend that continues to impact German exports.
- The German Chamber of Industry and Commerce (DIHK), led by Volker Treier, emphasized the impact of geopolitical risks and inflation on exports.
- The loaded truck industry also felt the effects of the export decline, experiencing a decrease in orders from exporters.
- The war in Ukraine has been a major factor in inflation, leading to strong dampening burdens for businesses, according to the DIHK.
- The German IHK (Chamber of Commerce and Industry) noted that exports to the USA saw a 5.7% increase in October, partially offsetting the overall export slump.
- Export growth to the USA was driven by increased demand for German products, while imports from the USA also saw a modest increase, according to Destatis data.
- In contrast, imports from China decreased by 2.4% in October, reflecting the global economic slowdown and geopolitical tensions between China and the West.
- The export-import balance with Russia continued to decrease due to the ongoing war in Ukraine, with only 0.6 billion euros in exports in October.
- The export slump and import volatility have created uncertainty in the German economy, prompting calls for policy action to support export-oriented businesses.
Source: www.stern.de
