German mechanical engineering companies increased their exports to a record level last year. Despite the weak economy and uncertainty about the Ukraine war, exports grew by a good six percent year-on-year to 192.4 billion euros, the industry association VDMA announced on Monday in Frankfurt. However, higher prices in the wake of inflation boosted exports. Adjusted for prices, they fell by 1.3 percent. “Although the annual balance sheet has nice price effects, the result is also impressive in real terms,” said VDMA chief economist Ralph Wiechers, looking at the preliminary figures from the Federal Statistical Office. The sharp decline feared by many did not materialize in 2022. According to Wiechers, the fourth quarter in particular was strong with a nominal increase of 9.3 percent. The disruptions in the global supply chains would have continued to dissolve. “In addition, the export expectations of machine and plant manufacturers have recently increased – a good omen for the start of the new year 2023.” Last year, the USA remained the most important export market for the mechanical engineering industry, which is a key German industry with more than a million employees. Exports to the USA grew nominally by 20 percent to 24.8 billion euros. The machine builders benefited from the weak euro against the dollar, as it makes goods cheaper for customers outside the euro zone.
Exports – mechanical engineering with records – economy
