"German-made products have been in high demand for quite some time now"
German exports see a resurgence in November, with a 2.1% increase, marking the fastest growth in nearly a year. The Federation Statistics Office reported exports at €127.3 billion, narrowly surpassing the expected 2.0% rise. The surge in exports is fueled by a boom in US business, with most German exports going to the States once more. Notably, shipments to the United States increased by 14.5%, while exports to the EU and China saw a decline.
Experts from the Ifo Institute suggest that the economic recovery abroad might be eluding German companies. Imports also saw a decrease, falling 3.3% to €107.6 billion. Demand for "Made in Germany" products outside the EU spiked, with exports to third countries rising 6.9% to €59.5 billion.
Thomas Gitzel, chief economist at VP Bank, opines that this significant export increase might not please US President-elect Donald Trump, who aims to decrease the US's trade deficits with major trading partners. Trump, who will be reinstated on January 20, has threatened import tariffs, which may have prompted companies to stockpile inventory before possible price hikes due to tariffs.
China's import share decreased by 4.2% to €6.6 billion, whereas the United Kingdom saw a 8.6% increase to €7.2 billion. The overall value of exports to EU countries totaled €67.8 billion in November, declining by 1.7% from the previous month. Import volumes from EU countries reached €55 billion, while imports from outside the EU amounted to €52.6 billion, including €100 million from Russia.
The revised sentiment among German industrial companies indicates a slowdown in December, based on the results of the Ifo Institute survey. The export industry apparently isn't gaining momentum towards the year's end, as stated by Klaus Wohlrabe, head of Ifo surveys. German companies have yet to fully benefit from foreign economic developments, unlike in previous years.
Enrichment insights reveal that overall exports in November 2024 grew 2.1% and a total of €127.3 billion, after experiencing a 2.9% drop in the previous month. Exports dropped 1.4% compared to the same period in 2023, reaching €1.4 trillion. Exports to third countries surged, boosted by increased sales to the US, Russia, and the UK, while exports to the EU and China saw a diminution. The US has become Germany's leading trading partner, with trade reaching €255 billion in 2024, marking a 0.8% annual increase.
The potential imposition of higher tariffs in the US could impact German exporters, especially those with heavy reliance on the US market. Chinese exporters have been increasing their exports in anticipation of potential tariffs, maintaining their focus on global market share. Germany is working to diversify its economy, adopting a "China plus X" strategy to maintain its ties with China while enhancing trade with other countries.
The surge in German exports to the United States, contributing to the overall economy, might face challenges with potential import tariffs proposed by US President-elect Donald Trump. Despite a decline in exports to EU countries and China, the 'Made in Germany' products saw an increase in demand from third countries.
