Unexpected increase in German exports
According to data from Germany’s Federal Statistical Office (Destatis), calendar- and seasonally-adjusted exports in the country rose 1.2 percent to about 130.4 billion euros, despite expectations of a 2-percent decline. 5 percent in April. Imports, on the other hand, decreased by 1.7 percent to 112 billion euros.
Compared to April 2022, exports increased by 1.5%, while imports decreased by 10.3%. Thus, Germany’s foreign trade surplus, corrected for seasonal and calendar effects, was approximately 18.4 billion euros.
The foreign trade surplus was registered at 3.6 billion euros in April 2022.
EXPORTS TO EU COUNTRIES DROPPED, IMPORTS INCREASED
71.4 billion euros of Germany’s exports in April were made to countries of the European Union (EU). 59.1 billion euros of the country’s imports came from the EU.
Compared with March, exports to EU countries decreased by 4.5 percent in April, while imports from these countries decreased by 0.4 percent.
‘TOO WEAK FOR TRUE RELIEF’
ING Germany Chief Economist Carsten Brzeski said: “After the sharp drop in German exports in March, the April recovery may seem like good news, but in fact, the export recovery was too weak for relief. real. And there are few signs of a stronger recovery in the coming months. saying.
Stating that exports from Germany have been extremely volatile since last summer, Brzeski said: “However, the general trend in exports is down, not up. Exports are no longer the engine of the strong and flexible growth of the German economy, as they used to be, but a hindrance. Supply chain difficulties, a more fragmented global economy and China’s ability to produce more and more of the goods it previously bought from Germany are among the factors putting pressure on German exports.” he performed the assessment of it.
THE ECONOMY ENTERS A TECHNICAL RECESSION
The German economy had technically entered a recession, contracting 0.3 percent in the first quarter of this year due to the impact of unusually high inflation and rising interest rates on consumer spending.
The economy contracted 0.5 percent in the last quarter of last year.
Although the bottlenecks that arose during the Covid-19 epidemic have eased, the country’s economy is negatively affected by the stagnation of demand due to the rise in interest rates, the decrease in confidence in the economy and the decrease in consumer purchasing power. in an environment of unusually high inflation.
The German government expects 0.4 percent growth in the economy this year. Leading German economic institutes predict the country’s economy will grow 0.3 percent this year.
The Association of German Chambers of Industry and Commerce (DIHK) lowered its real growth forecast for German exports in 2023 from 2.5% to 1% on May 3, despite better functioning supply chains after the COVID-19 outbreak.
The DIHK cited high inflation, rising interest rates and rising protectionism in world trade as the cause. (AA)