According to the data of the German Federal Statistical Office (Destatis), seasonal and calendar adjusted exports in the country increased by 4 percent to 136.7 billion euros in February. The expectation for February export data was that it would increase by 1.6 percent compared to the previous month.
Despite the energy crisis and geopolitical risks, with the effect of increasing exports to important trade partners such as China, England and the USA, it was noteworthy that exports in Germany started to rise again in 2 months. The country’s exports increased by 2.5 percent in January.
Trade surplus increased
Imports in Germany rose 4.6 percent in February to 120.7 billion euros.
Thus, Germany’s foreign trade surplus, adjusted for seasonal and calendar effects, was approximately 16 billion euros. The expectation for the foreign trade surplus was 17 billion euros.
Foreign trade surplus was recorded as 10.7 billion euros in February 2022.
Compared to February 2022, the country’s exports increased by 7.6 percent and imports by 3.8 percent.
In Germany, 73.9 billion euros of February exports were made to European Union (EU) countries. The country also imported 62.8 billion euros from the EU.
Compared to February 2022, exports to EU countries increased by 2 percent and imports from these countries increased by 5.1 percent.
On the other hand, Germany’s most important trading partner, China, increased its exports by 10.2 percent compared to the previous month to 8.5 billion euros in February. Imports from China, on the other hand, increased by 6.7 percent compared to January and reached 13.6 billion euros.
In the said period, exports to the USA increased by 9.4 percent to reach 14 billion euros, while imports from the USA decreased by 8.7 percent to 7.6 billion euros.
It was noteworthy that Germany’s exports to the UK, another important trade partner of Germany, reached 6.3 billion euros in February, with an increase of approximately 2.5 percent on a monthly basis.
Meanwhile, trade with Russia continues to decline due to the Ukraine-Russia war. Exports to Russia fell 14.3 percent on a monthly basis and 59.9 percent on an annual basis. Imports from Russia also decreased by 67.2 percent on a monthly basis.
“Export demand still lacks momentum”
The Association of German Chambers of Industry and Commerce (DIHK) announced that about half of German exporting companies expect a recession in the economy in 2023 and that the growth in exports is likely to fall to 2.5 percent this year.
Meanwhile, the Export Expectation Index of the Munich-based Economics Research Institute (Ifo) rose 0.5 points to 4.0 points in March, despite the high level of uncertainty.
Klaus Wohlrabe, Director of Ifo Surveys Center, commented, “Export demand still lacks momentum. In February 2022, the Export Expectation Index was almost 4 times higher with 15.6 points. The global economy is progressing quite cautiously.” used the phrases.