German exports fell again: effects on the economy and financial markets

German exports fell again: effects on the economy and financial markets

According to a report by www.tagesschau.de, German exports surprisingly fell for the second month in a row in October. The reason is the weak economy in Europe. Imports are also shrinking unexpectedly.

The German economy is not gaining momentum: exports fell by 0.2 percent in October compared to the previous month to 126.4 billion euros. Economists, on the other hand, had expected an increase of 1.1 percent after a decline of 2.5 percent in September. Compared to the same month last year, exports fell by 8.1 percent.

The export slump continues, which could lead to a continued economic slowdown in Germany. Exports to EU member states fell by 2.7 percent, and the economic slowdown in the EU is hitting German exports particularly hard.

Imports unexpectedly fell for the fifth month in a row in October, by 1.2 percent to 108.6 billion euros. Compared to the same month last year, imports fell by 16.3 percent. According to the information, the foreign trade balance closed in October 2023 with a surplus of 17.8 billion euros.

The mood in the German export industry improved for the second month in a row in November, signaling stabilization. The barometer for export expectations rose to minus 3.8 points, the highest value in six months.

The weak export and import figures indicate that the German economy continues to have difficulty recovering. This could lead to a prolonged economic downturn and impair the dynamics of the export economy. The ongoing export slowdown could also have a negative impact on the global economy, especially in conjunction with the economic slowdown in the EU.