German exporters started the second half of the year with significant slumps in important business with non-EU countries. Exports to these so-called third countries fell by 7.6 percent in July compared to the previous month, as the Federal Statistical Office announced on Monday. That was the first decline after three increases in a row. Overall, exports to countries outside the EU, which cover almost half of all German exports, totaled 56.8 billion euros after calendar and seasonal adjustments. Inflation, rising interest rates and emerging markets with financial difficulties could further dampen demand, believes Klaus-
Jürgen Gern from the Kiel Institute for the World Economy (IfW). “However, the German companies are still sitting on high order backlogs, which they can work off as far as the currently emerging easing of the supply bottlenecks allows this.” A sharp slump in exports is therefore currently not to be expected.