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German exports fall more than expected in August

Published 10/05/2023, 02:18 AM
Updated 10/05/2023, 02:51 AM
© Reuters. Cars intended for export wait at the port for loading, as the spread of the coronavirus disease (COVID-19) continues in Bremerhaven, Germany, April 24, 2020. REUTERS/Fabian Bimmer/File photo

BERLIN (Reuters) -German exports fell more than expected on the month in August, federal statistics office data showed on Thursday, as weak global demand hurt the country's exports.

Exports fell 1.2% in August from the previous month, data showed, compared with a forecast 0.4% decline in a Reuters poll.

August was the second month in a row to see a decline in exports, following a downward-revised 1.9% dip in July.

ING economist Carsten Brzeski said cooling global demand was worsening structural problems.

"As a result, trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag," he said, adding that the export figures add to the risk of the economy sliding into recession in the third quarter.

Imports also unexpectedly fell by 0.4% on the month, the data showed. They had been forecast to increase by 0.5%.

The foreign trade balance showed a surplus of 16.6 billion euros ($17.45 billion) in August, versus an upwardly revised surplus of 17.7 billion euros the previous month.

Besides China, exports to almost all destinations relevant for German companies were down in August, with a marked 2.6% decline in euro zone exports and exports to the United States falling by 1.3%. Exports to China were up 1.2%, the office said.

© Reuters. Cars intended for export wait at the port for loading, as the spread of the coronavirus disease (COVID-19) continues in Bremerhaven, Germany, April 24, 2020. REUTERS/Fabian Bimmer/File photo

Sentiment in the German export industry was markedly worse in September, an Ifo survey showed last month, as exports to all key regions are currently in decline.

($1 = 0.9511 euros)

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