Status: 08/03/2022 11:01 a.m
After a strong June, Germany’s exporters achieved a strong plus in the first half of the year. Even with Russia, despite the sanctions, trade has picked up again.
German exporters were able to benefit from high demand in June. Exports grew in June by 4.5 percent compared to the previous month and thus totaled a record value of 134.3 billion euros, as reported by the Federal Statistical Office. This is the third increase in a row.
Most German exports went to the United States in June. After calendar and seasonal adjustment, 6.2 percent more goods were exported there than in May. Overall, US exports totaled 14.2 billion euros.
In the entire first half of the year, German exports grew by 13.0 percent compared to the same period of the previous year to 754.2 billion euros. Nevertheless, economists warn against too much euphoria in view of the good figures: “Price increases can increase the nominal export volume without actually more being exported,” says the chief economist at VP Bank, Thomas Gitzel.
Exports to Russia are increasing again
Imports also increased in June for the fifth month in a row. However, the increase of 0.2 percent was significantly weaker than in the previous months. The trade balance – exports minus imports – again showed a clear plus of 6.4 billion euros in June.
Germany’s trade in goods with Russia increased again in June: According to provisional figures from the Federal Statistical Office, German exports increased by 14.5 percent compared to May, and imports rose by 4.8 percent. The trade volume is still significantly lower than before the Russian attack on Ukraine: Compared to June 2021, exports to Russia fell by 40.3 percent.
Negative prospects for the second half of the year
The Association of German Chambers of Industry and Commerce (DIHK) warns of a difficult second half of the year for the export economy. “Supply chain disruptions and high costs for energy, raw materials and imported advance services continue to impede production, including in export-oriented German industry,” said DIHK foreign trade expert Carolin Herweg: “The cooling economy in important export partners such as the USA, China or the euro Zone, also dampens the demand for products ‘Made in Germany’.”
The mood among exporters also clouded over at the beginning of the second half of the year. The export expectations determined by the ifo institute fell in July to minus 0.5 points from plus 3.4 points in June. “The gas shortage weighs on the outlook for German exports,” the institute said.