💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Global slump sparks record German export drop

Published 01/08/2009, 02:42 AM
Updated 01/08/2009, 02:48 AM
DBKGn
-

(Adds quotes, details)

BERLIN, Jan 8 (Reuters) - German exports posted a record fall in November as demand for cars and others mainstays of the manufacturing economy plummeted, deepening worries about the country's already bleak 2009 outlook.

Adjusted for seasonal swings, exports fell by an unprecedented 10.6 percent month-on-month in November, Federal Statistics Office figures showed on Thursday.

It was the biggest monthly drop since reunification in 1990, sending the euro briefly lower against the dollar and the pound.

Alexander Koch, an economist at Unicredit, described the latest trade figures as "horrible."

"Global demand is collapsing. It's not helping that German companies are basically in good shape and highly competitive. The data show that trade will weigh massively on growth in the fourth quarter," Koch said.

Deutsche Bank has already predicted the German economy could contract by up to 4 percent this year -- which would been more than four times as bad as the country's previous worst post-war performance.

Imports also fell, dipping 5.6 percent on the month, meaning Germany's adjusted trade surplus shrank to 10.7 billion euros from 15.8 billion in October, the Office said. A surplus of 14.5 billion euros had been forecast in a Reuters poll.

The same survey of economists had forecast exports would drop by 2.8 percent on the month, and imports by 1.9 percent.

A spokesman for the Office said the figures showed the car and chemical industries had been among the many hit in November.

Carmakers such as Daimler and Volkswagen have already carried out or considered cuts to production to compensate for weak demand.

Exports to non-euro zone EU countries fell by 16.1 percent on the year. They fell 7.8 percent to non-EU countries.

The figures showed demand for German goods was weakest from European Union countries outside the euro area -- like Britain. The pound fell sharply against the euro in the run-up to Christmas making German goods more expensive in Britain.

Year-on-year, exports declined by 11.8 percent in unadjusted terms. Imports were down by 0.9 percent.

In the first 11 months of the year, exports were up by 4.0 percent from 2007, with imports rising by 7.3 percent. (Writing by Dave Graham; editing by Noah Barkin)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.