2023-06-05 11:58:40
German exports rebounded in April following a sharp decline a month earlier, official data showed on Monday, but it is still too early to see a recovery in Europe’s largest economy, analysts warn.
In total, Germany exported in April for 130.4 billion euros in seasonally adjusted data (CVS), following its exports fell 5.2% in March compared to February, reported the German statistical office Destatis.
Imports were down 1.7% from March, totaling 112 billion euros.
The foreign trade balance, the pillar of the German economy, posted a surplus of 18.4 billion euros in April.
This recovery was favored by a 4.7% increase in exports to the United States, 10.1% to China, which is a key market for Germany, and more than 4% to the countries of the European Union.
However, this rebound is “too light to rejoice”, said Carsten Brzeski, economist at ING bank.
Europe’s largest economy entered recession in the first quarter of this year, a first since the coronavirus pandemic, with two consecutive quarters of GDP decline, including a 0.3% drop between January and March.
German industry, long dependent on cheap Russian gas, was hit hard last year following Moscow invaded Ukraine. Supplies were cut and prices soared.
“Trade is no longer the strong and resilient growth engine of the German economy as it once was,” Brzeski said.
In question, in particular, the expected slowdown of the American economy and the capacity of China to produce more and more of its own goods. Two factors which “will leave obvious traces on German exports”, warns Mr. Brzeski.
The German government hopes that this slump will be temporary and expects growth of 0.4% for the whole of 2023.
This article has been published automatically. Sources: ats / awp / afp
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