The weak demand on the world markets is increasingly putting a strain on the German economy. For the second month in a row, exports fell more than expected.
German exports fell for the second month in a row in August. Exports fell by 1.2 percent compared to the previous month to 127.9 billion euros, as the Federal Statistical Office announced today. Experts had only expected a decline of 0.4 percent. Exports had already fallen by 1.9 percent in July. Imports also fell: they fell by 0.4 percent to 111.4 billion euros. Economists had expected growth of 0.5 percent here.
Exports to EU countries fell by 1.5 percent in August compared to the previous month to 69.6 billion euros, while other foreign business fell by 0.9 percent to 58.3 billion euros. The USA remained the number one buyer country. Exports to China increased slightly.
“Prospects remain severely clouded”
“The situation is difficult for the German export industry and the prospects remain very clouded. The global weakness in demand is increasingly affecting companies,” said economist Bastian Hepperle from the private bank Hauck Aufhäuser Lamp.
Carsten Brzeski, chief economist at ING, also judged: “Frictional losses in supply chains, a more fragmented global economy and the fact that China is increasingly able to produce goods that it previously purchased from Germany are putting a strain on the German export economy.”
High interest rates dampen demand
The mood in the export industry is currently worse than it has been in over three years. The barometer for export expectations fell to minus 11.3 points in September, from minus 6.5 points in August, according to the Munich ifo Institute.
“The export economy is in a phase of weakness,” said the head of the Ifo surveys, Klaus Wohlrabe. One reason for this is that many central banks have raised their key interest rates significantly in the fight against inflation. This drives up financing costs. “The rise in interest rates worldwide is having an effect,” said Wohlrabe. “They dampen demand for German goods.”