Structural problems
German exports are collapsing – especially to the USA
December 13, 2024 – 10:50 a.mreading time: 1 Min.
The German economy is weakening, and exports to the USA are now also collapsing. A foretaste of the time under President Donald Trump?
A major setback for Germany’s exporters: In October, companies delivered significantly fewer goods abroad. Exports shrank by 2.8 percent to 124.6 billion euros in September, as the Federal Statistical Office in Wiesbaden announced. Exports also fell by 2.8 percent compared to the same month last year.
Exports to the USA,the largest target market for German exports,fell by a good 14 percent month-on-month to 12.2 billion euros. Simultaneously occurring, exports to China fell by 3.8 percent. in trade with EU countries, exports fell by 0.7 percent.
The start of the fourth quarter does not bode well with the decline in October, wrote VP bank chief economist Thomas Gitzel. “Even if the important decline in exports to the USA is likely to be characterized by large orders, the decline gives a foretaste of what could happen in the event of serious customs disputes with the USA.”
Growing competition on the world markets, for example from China, as well as structural problems in German industry such as expensive energy and a lot of bureaucracy have been causing problems for Germany as an export nation for a long time.exports had already fallen in September.
Imports to Germany shrank by 0.1 percent in October compared to September to 111.2 billion euros. Compared to the same month last year, there was an increase of 1.7 percent. The bottom line was that there was a positive foreign trade balance of 13.4 billion euros.