German exports dropped -8.0% yoy to EUR 106.1B in June. Imports dropped -4.4% yoy to EUR 89.3B. Trade surplus came in at EUR 16.8B. In calendar and seasonally adjusted, trade surplus narrowed to EUR 18.1B.
After Federal Statistical Office’s release, German Chamber of Industry and Commerce (DIHK) warned that export cannot do more to the economy in the second half. Ending the year with a “weak zero” growth in export is already a “success”.
Foreign trade chief of DIHK,Volker Treier, said “increasing protectionism and a noticeably weakening global economy are placing a direct burden on the export-strong German economy”. In particular, “US trade conflict with China and the tenacious struggle for Brexit are unsettling investors worldwide – and are clouding prospects, especially for the many German capital goods producers.”
And, “if we were to end the year with a weak zero – and thus with the worst result since the financial crisis – that would be a great success considering the conflict-laden and crisis-ridden global economy.”
