Status: 04.07.2022 11:07 a.m
Exports from German companies fell in May compared to April. For the first time since 2008, more was imported than exported. But why did exports to Russia soar?
Germany’s exports fell slightly in May compared to April. They shrank by 0.5 percent to 125.8 billion euros, as reported by the Federal Statistical Office. Experts had expected a slight increase. Imports to Germany, on the other hand, increased by 2.7 percent to 126.7 billion euros in the same period. The foreign trade balance was therefore negative and was minus 0.9 billion euros in May.
The decline is related to supply shortages, David Kohl, chief economist at Julius Baer, told tagesschau24. The demand is robust, but the companies cannot deliver in all areas because the product quantities are lower, for example due to delivery bottlenecks, according to the expert.
It is the first time since January 2008 that Germany’s foreign trade balance is negative. The Federal Statistical Office does not have any comparative figures before this date because the statistics were changed at that time. For years, Germany was criticized for its high export surplus.
Why are exports to Russia increasing?
What is striking about the latest export data are the increased exports to Russia. Despite the sanctions against the country after the attack on Ukraine and measures to restrict exports in May, they increased by 29.4 percent to 1.0 billion euros compared to April. In March and April they had fallen massively. Imports from the country decreased compared to the previous month by 9.8 percent to 3.3 billion euros. Russia mainly supplies raw materials and energy.
“Part of the reason for the increased exports to Russia is the increased prices,” explains Destatis’ Dirk Mohr tagesschau.de. But exports of pharmaceutical products, which are exempt from the sanctions, are responsible for the increase in particular.”
Most exports go to the USA
German companies exported goods worth 67.5 billion euros to the member states of the EU, a decrease of 2.8 percent compared to April. Exports to third countries, on the other hand, increased: compared to April, they grew by 2.3 percent to 58.3 billion euros. Most German exports went to the USA. The value rose by 5.7 percent compared to April to 13.4 billion euros. Exports to China increased by 0.5 percent to 8.7 billion euros.
Compared to May 2021, exports in May of the current year increased by 11.7 percent to 125.8 billion euros. Imports increased by 27.8 percent to 126.7 billion euros compared to the same month last year. Exports to Russia fell by 54.6 percent year-on-year.
In May, most imports, worth EUR 18.0 billion, came from the People’s Republic of China. However, that was 1.6 percent less than in April. Goods worth 7.4 billion euros were delivered to Germany from the USA, an increase of 9.7 percent.