Escalating German Exports Anticipated Prior to Second Lockdown
Updated Article:
German trade figures for October 2020, recently disclosed by the Federal Statistical Office, show a mixed picture. Exports bounced back from the previous month but still lagged behind last year's level, dropping by 6.5 percent year-on-year to 112.0 billion euros. Imports, meanwhile, decreased by 5.9 percent to 92.7 billion euros in the same period.
The trade balance closed with a surplus of 19.4 billion euros in October, lower compared to the 21.3 billion euros surplus experienced in the same month the previous year. As for the current account balance, it stood at 22.5 billion euros, down from the 19.0 billion euros surplus recorded in September 2019.
Interestingly, Germany exported goods worth 59.7 billion euros to the European Union (EU) and 50.4 billion euros were imported from EU member states. Compared to October 2019, both exports and imports to the EU saw a slight drop of 5.1 percent and 2.9 percent respectively. Goods worth 52.4 billion euros were exported to third countries, a significant 8.0 percent decrease, while imports from these countries dropped 9.2 percent to 42.2 billion euros.
Fast-forward to 2025, recent data indicate the EU remains Germany's dominant trading partner. Germany's exports to EU member states have experienced some growth, while imports from the EU have been increasing at a steady rate. In contrast, exports and imports from third countries have declined slightly. This trend suggests a relatively moving stronger position of the EU in Germany's trade compared to third countries like the US, China, and the UK.
However, it's essential to note that the precise comparison between October 2019 and current trade figures is challenging due to a lack of direct October 2019 comparison figures. Nonetheless, the current data points to a generally stable or growing share of exports and imports from the EU, while third countries have experienced some decline in trade volumes with Germany since October 2019.
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- In contrast to the declining trade with third countries, the EU's share in Germany's overall trade has been growing, with exports and imports from the EU making up a larger proportion of Germany's total trade finance.
- As the EU remains Germany's dominant trading partner, the finance industry will likely continue to witness an increasing percentage of transactions related to trade with EU member states, as opposed to third countries like the US, China, and the UK.
