German Exports Fall More Than Forecast

(RTTNews) - Germany's exports declined more than expected and imports posted a sharper contraction in January, data from Destatis showed Tuesday.

Exports declined 2.3 percent on a monthly basis, in contrast to the 3.9 percent increase in December. Shipments were expected to fall 2.0 percent. This was the biggest fall since May 2024.

Likewise, imports declined 5.9 percent, reversing December's 1.3 percent increase.

Consequently, the trade surplus increased to EUR 21.2 billion in January from EUR 17.4 billion in December. The expected level was EUR 15.4 billion.

On a yearly basis, exports declined 2.7 percent, partially offsetting the 6.2 percent increase in December. At the same time, imports decreased 6.4 percent compared to the 8.3 percent increase in the previous month.

Trade data adds to a very weak start to the New Year for the entire German economy, ING economist Carsten Brzeski said.

German exporters faces a triple China shock of weaker demand for German products in China, increased competition from Chinese producers in third markets and Germany's home market, the EU, and finally the dependence on Chinese rare earths.

The economist expects the economy to accelerate this year on the back of fiscal stimulus. However, this optimism will not survive if we continue to see macro data like this, he added.

German exports to the United States showed an increase of 11.7 percent on December, while imports from the US decreased 8.2 percent. At the same time, exports to the People's Republic of China decreased 13.2 percent and imports from China decreased 8.3 percent.