Germany’s trade surplus fell in 2021 to 173.3 billion euros (183.1 billion francs), for the fifth year in a row and despite a new export record achieved amid shortages.
The largest European economy concluded the year with a 14% increase in exports compared to 2020 to 1375.5 billion euros, setting a new all-time record following that of 2018 with 1317 billion euros invoiced, , according to data released on Wednesday by the Federal Statistical Office
But imports, particularly burdened by energy costs, climbed faster, by 17%, to 1202.2 billion euros, also an all-time high, to eventually degrade the balance of trade in goods, according to Destatis.
This is in stark contrast to figures released on Tuesday by France, which recorded the worst trade deficit in its history last year at 84.7 billion euros.
The German surplus has been declining since 2016, a record year with almost 249 billion euros.
For the month of December, the German surplus is 6.8 billion euros in seasonally adjusted data, compared to 10.9 billion in November, also disappointing analysts’ expectations.
In gross data, favored by Destatis but less indicative of a fundamental trend, the German trade surplus also fell in December over one month, to 7.0 billion euros.
Exports accounted for 117 billion euros over the period, up 0.9% month-on-month, and imports 110 billion (+4.7%).
United States first export outlet
In 2021, the United States confirmed its first place as an export destination by absorbing 122.1 billion euros of goods from Germany, ahead of China (103.6 billion euros) and France (102.3 billion euros).
By adding imports to exports, China remains the largest trading partner, with a volume of 246 billion euros of trade.
German foreign trade derives its strength from the important industrial component of its economy, with cars and car parts, machinery, chemicals, computer/electrical and optical devices “made in Germany” being snapped up all over the world.
The global shortage of industrial components, however, last year gripped this mechanics, leading to production stoppages on German soil, especially in the automotive.
As a result, German car exports fell by 10% year-on-year to 2.38 million units, according to the VDA federation at the beginning of January.
Despite the record export figure in 2021, “disruptions in global supply chains and high logistics costs are still weighing on foreign trade and hampering production,” while “short-term improvement is not in sight,” industry lobby BDI said in a statement.
The latter argues for Germany to take advantage of its G7 presidency in 2022 to work on “trade agreements, for example with the Mercosur countries or Australia”, and for “the reform of the World Trade Organization (WTO)” in a context of crisis and stubborn rivalries between the two leading world economic powers, China and the United States.
This article was published automatically. Picture: ats/afp Source: afp
