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Published in:
Wednesday 4 May 2022 – 12:56 PM
| Last updated:
Wednesday 4 May 2022 – 12:56 PM
German exports to Russia fell to their lowest level in two decades, as the Russian attack on Ukraine contributed to a decline in overall trade, according to Bloomberg News.
The German statistics office said in a statement on Wednesday that sales to Russia fell by 63 percent to 860 million euros ($905 million) in March “due to sanctions imposed” following the invasion “and the resulting measures to restrict exports and unauthorized behavior of market participants.”
Total exports declined 3.3% from the previous month.
Governments and companies are severing ties with Russia amid Western anger over the offensive and a torrent of sanctions once morest the Kremlin and its associated business tycoons, and Germany’s economic outlook has become murky as its key manufacturing sector suffers from a shortage of inputs and record inflation as a result of the war.
Carsten Brzeski of ING said: “Looking ahead, despite the already well-developed order book, the short-term outlook for German exports remains discouraging,” he said, adding that pandemic-related shutdowns in China were exacerbating an already existing supply shortage.
“It is very likely that the war in Ukraine will disrupt other supply chains forever,” he added. In general, with the high probability that the war will accelerate the trend of deglobalization and energy prices will continue to rise for a longer period, the industry sector faces more headwinds.”