German exports inch up in June but outlook gloomy

FRANKFURT: German exports rose only marginally in June while imports fell, official data showed Thursday, highlighting weaker demand as Europe’s top economy struggles through a downturn.

Germany shipped goods worth 131.3 billion euros ($143 billion) in June, according to data published by federal statistics agency Destatis, up 0.1 percent on the previous month.

Imports plunged by 3.4 percent to 112.6 billion euros, widening the trade surplus to 18.7 billion euros.

The decline was mainly down to lower imports from fellow eurozone countries, Destatis said.

“Trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag,” said ING bank economist Carsten Brzeski.

The latest figures confirm that “the German economy remains stuck in stagnation”, he added.

Europe’s powerhouse economy recorded zero growth between April and June, preliminary figures showed last week, as inflation and high interest rates continued to weigh on demand.

The German economy shrank over the two preceding quarters, sliding into a technical recession after Russia’s war in Ukraine sent energy prices surging.

The United States remained the most popular destination for made-in-Germany goods in June, Destatis said, though exports were down 0.2 percent on a month earlier.

Most imports again came from China.

Looking ahead, economists saw little hope of a quick economic rebound.

“The collapse of export order books since the start of the year suggests a further weakening of exports in the very near term,” Brzeski said.

“Supply chain frictions, a more fragmented global economy and China increasingly being able to produce goods it previously bought from Germany are all factors weighing on German exports,” he added.