German exports continue to decline in December

A decline of 4.6 % compared to the previous month. How does this affect the economy and global trade? What impact does this have on economic development?

Wiesbaden - In December 2023, Germany recorded a decline in exports of 4.6% compared to the previous month, while imports fell by 6.7%, according to the Federal Statistical Office (Destatis). Exports also fell by 4.6% compared to the same month in December 2022, while imports fell by 12.4%. In 2023 as a whole, exports fell by 1.4% compared to the previous year, while imports fell much more sharply by 9.7%.

In December 2023, exports amounted to 125.3 billion euros, while imports stood at 103.1 billion euros. This led to a surplus in the foreign trade balance of 22.2 billion euros. In comparison, the surplus in November 2023 amounted to 20.8 billion euros and 13.7 billion euros in December 2022.

Particularly high decline in EU countries

Exports to EU countries fell by 5.5% to 67.5 billion euros in December 2023, while imports fell by 7.4% to 54.3 billion euros. Exports to the eurozone and EU countries outside the eurozone in particular recorded declines.

China remains the largest importer

Trade with non-EU countries saw exports fall by 3.5% and imports by 5.9%. The United States was the main destination for German exports, followed by China and the UK. China also remained the largest supplier of imports to Germany in December 2023, although imports from the country fell by 8.5%. Imports from the United States increased slightly, while imports from the United Kingdom decreased.

The unadjusted original values for foreign trade in December 2023 showed a decline in exports of 10.7 % and imports of 16.2 % compared to the same month in the previous year. The foreign trade balance closed with a surplus of 16.6 billion euros.

German economic engine is faltering

The current export figures indicate that Germany's economic engine is clearly faltering. Last year's celebrated energy savings appear to be directly linked to shrinking economic growth. This is having a particularly strong impact on the start-up economy, as it is becoming increasingly difficult for the economy to provide the necessary risk capital for innovations. The situation calls for a close review of the German government's economic policy in order to find pragmatic solutions and strengthen Germany as a business location so that no further prosperity is lost.