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German exports face headwinds, down 2.9 per cent in November

January 10, 2020


Abstract : German exports dropped in November 2019 by 2.9 per cent on the year, according to the latest official data, as Europe's largest economy feels the pinch of global trade tensions.

German exports dropped in November 2019 by 2.9 per cent on the year, according to the latest official data, as Europe's largest economy feels the pinch of global trade tensions.

German firms exported goods worth 112.9 billion euros (125.5 billion dollars) that month, the Federal Statistical Office (Destatis) said on Thursday.

Imports also shrank by 1.6 per cent to 94.6 billion euros.

Compared to the previous month, exports declined by 2.3 per cent and imports by 0.5 per cent.

In the first 11 months of 2019, Germany managed a slim year-on-year increase in exports of 0.7 per cent to 1,229.6 billion euros, marking far weaker growth than the country has seen in recent years.

The trade war between China and the United States has been a key reason for the slump. Its impact has been felt globally, including by China, creating problems for Germany's export-focused economy.

Germany's Federal Association of Wholesale, Foreign Trade and Services (BGA) recently predicted that German exports would grow by 0.5 per cent over the whole of 2019.

The dispute between China and the US has produced a string of tit-for-tat tariffs over an almost two-year period. Tensions have however subsided following an agreement struck in December on a partial trade agreement between the world's two largest economies.

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