German exports in 2024. decreased by one percent compared to the previous year, reaching the total value of 1,559.7 billion euros. Among the main reasons, the decline in demand from China, country that previous years was the key market partner for German producers.
In the last quarter of 2024. Exports further weakened, which made it difficult for Germany’s recovery because it was in recession. The German Federal Statistical Office confirmed that export activities were ‘significantly lower’ in relation to the previous quarter, and industrial production fell by 4.5 percent compared to 2023. year.
The automotive industry is especially affected, as well as the production of machinery and in December recorded a decline of 10 percent. On the other hand, the pharmaceutical industry was the only one generated by a growth of 11 percent, which mitigated the overall losses of German production, writes Tagesschau, reports.
Despite negative indicators, in December 2024. Exports recorded a slight recovery, growing by 2.9 percent compared to November. The largest growth of exports was recorded in trade with the countries of the European Union and the consignments rose by 5.9 percent. Nevertheless, the German Federal Association for Wholesale, Foreign Trade and Services (BGA) has previously assessed 2024. As a ‘lost year’ for Germany foreign trade.
Not 2025. Does not bring optimistic forecasts. About 80 percent of German exporters expect further decrease in volume and export revenues, and BGA envisages the reduction of foreign trade by 2.7 percent.
‘Potential customs threats New Trump administrations worsen the mood in the industry’, Klaus Wohlrabe warned from IFO Institute.
One of the biggest shifts in the trading structure of Germany happened in relations with the United States. The US was the first time since 2016. Threater China as the most important German trade partner. The total trade with that country has reached 255.4 billion euros, and the German trade surplus with the United States increased to record 71.4 billion euros.
Nevertheless, exports to the US in December 2024. It fell 3.5 percent, and at the same time imports from the US increased by three percent. This trend is concerned about the economists and fears that American customs measures could still make German exports.
Carsten Brzeski, Economist Ing Bank, considers that the real problem does not lie alone only in exports, but in possible relocation of production in the United States.
‘The danger is not only in the fall of exports, but also that German companies move their production in the United States for more favorable conditions,’ Brzeski said.
Sebastian Dullien from the Institute of Macroeconomics and Enguncture Research (IMK) in the Hans Böckler Foundation considers that a special problem is the weakness of the German industry.
‘Two most important sectors of the manufacturing industry, mechanical engineering and the automotive industry, re-show signs of weakness,’ Dullien warned.
Special concerns caused the announcements of the American President Trump on the introduction of additional customs in German products, which could jeopardize the German industry.
‘The announcements of customs measures could specify a new heavy blow to the German economy, and it is already facing serious challenges,’ Dullien added.
(Vijesti.ba)
