German exports fall more than expected in September

GERMAN exports fell more than expected on the month in September, federal statistics office data showed on Friday (Nov 3), as weak global demand hurt exports.

German exports fell 2.4 per cent in September from the previous month. The result compared with a forecast 1.1 per cent decline in a LSEG poll.

“Trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag,” said Carsten Brzeski, global head of macro at ING.

He said that since the start of 2022, net exports have been a drag on the economy in four out of six quarters.

Supply chain frictions, a more fragmented global economy and China moving from a dynamic export destination to competitor are all factors weighing on the German export sector, Brzeski said.

Exports to European Union countries fell 2.1 per cent on the month and exports to countries outside the EU fell 2.8 per cent, with sharp declines in exports to the US and China.

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The statistics office upwardly revised the data of the previous month to a 0.1 per cent increase in exports on the month, instead of a 1.2 per cent decline.

Imports also unexpectedly fell by 1.7 per cent on the month in September, the data showed. They had been forecast to increase by 0.5 per cent.

The foreign trade balance showed a surplus of 16.5 billion euros (S$23.9 billion) in September, versus an upwardly revised surplus of 17.7 billion euros the previous month. REUTERS