German exports gather pace, boosting recovery hopes
June 7, 2024
Exports from Germany appeared to accelerate in figures released on Friday, boosting hopes that Europe's largest economy has emerged from a downturn.
Germany's export-orientated economy was particularly hard hit in recent years by a slowdown in the global economy, temporarily high energy prices, and rising interest rates.
How do the figures stack up?
German exports for April rose by 1.6%, figures from Germany's Federal Statistics Agency, Desatis showed, easily surpassing March's unexpectedly high 1.1% figure.
However, imports also grew — by 2.0% compared to the previous month — while still significantly below the export amount.
While goods worth €136.5 billion were exported from Germany, €114.5 billion in products were imported to the country.
The balance was favorable in comparison with both European Union and non-EU countries. Some €74.1 billion in goods were exported to the bloc's other 26 members, while €61.3 billion was imported.
Exports were actually lower in April to the United States — Germany's largest individual market — with a 1.2% drop in exports at €14.2 billion.
There was marginal growth in German exports to China — 0.8% to €8.4 billion. Imports from Asia's biggest economy were still higher at €12.8 billion, despite being a full 7.8% down on the previous month.
Bundesbank confident of recovery
Meanwhile, Germany's central Bundesbank on Friday said it appeared the country's economy was slowly recovering after a weak two years. It said the export industry would benefit from rising foreign demand.
It expected German economic output would grow by 0.3% in 2024 — down on a December prediction of 0.4%.
However, bank economists expect slightly stronger growth looking ahead, of 1.1% in 2025 and 1.4% in 2026.
There has been a prevailing mood of economic gloom in Germany, as businesses struggle with raised energy costs, high inflation, and elevated interest rates.
In 2023, as a whole, Germany slipped into a slight recession with a fall in adjusted gross domestic product of 0.2%.