Imports and exports fell short of last year's figures
In August 2020, Germany's trade balance closed with a surplus of 6.1 billion euros when considering trade with countries outside the European Union (EU), a decrease from the 12.8 billion euros surplus recorded in the same month the previous year. This narrowing of the trade surplus is attributed to the global economic disruption caused by the COVID-19 pandemic, which significantly affected international trade flows and demand.
Imports from countries outside the EU in August 2020 amounted to 36.9 billion euros, a decrease of 6.5% compared to the same month in 2019. Exports to non-EU countries during the same period totaled 43.0 billion euros, a decrease of 13.3% year-on-year. However, exports to non-EU countries increased by 0.8% compared to July 2020, while imports decreased by 2.3% during the same period.
The economic slowdown, supply chain interruptions, and reduced industrial activity during the pandemic period contributed to the decline in German exports and imports. Compared to the same month last year, exports to EU countries fell by 7.0%, and imports from these countries fell by 5.4%.
Germany's current account balance in August 2020 showed a surplus of 16.5 billion euros, with the surplus from trade with countries outside the EU amounting to 7.1 billion euros. In August 2019, the current account balance showed an active surplus of 15.9 billion euros, with the trade balance surplus with countries outside the EU standing at 10.5 billion euros.
Adjusted for calendar and seasonal effects, the trade balance surplus with countries outside the EU in August 2020 was 9.0 billion euros, compared to 16.4 billion euros in August 2019. The overall trade balance surplus in August 2020 was 15.7 billion euros, a decrease from the 16.4 billion euros surplus recorded in August 2019.
Germany's trade balance is typically characterised by a surplus due to its strong export performance. However, during periods of economic disruption, such as the COVID-19 pandemic, the trade surplus can fluctuate. The decreases in both exports and imports led to a narrowing of the trade surplus in August 2020 compared to the previous year.
This article provides an overview of the changes in Germany's trade balance in August 2020. For more detailed statistics, please refer to official sources.
[1] German Federal Statistical Office. (2020). Monthly report: External trade August 2020 [2] Federal Ministry for Economic Affairs and Energy. (2020). Monthly report: Foreign trade August 2020 [3] European Central Bank. (2020). COVID-19 pandemic: impact on trade and the current account in the euro area [4] OECD. (2020). Germany: economic outlook
- The decrease in Germany's trade surplus with countries outside the EU in August 2020 can be partially attributed to reduced imports and exports in the other industry, as economic slowdown, supply chain interruptions, and reduced industrial activity during the pandemic period affected both sectors.
- In terms of financing, Germany's current account balance, which reflects the country's overall trade and investment transactions, still showed a surplus in August 2020, partly due to the remaining trade surplus with countries outside the EU in industries such as manufacturing and services.
