Weak EU business: German exports unexpectedly fall in October

Weak EU business: German exports unexpectedly fall in October

According to a report by www.n-tv.de,
German exports surprisingly fell for the second month in a row in October. The reasons lie primarily in the weak European business. While exports to EU member states fell by 2.7 percent, sales to the USA and China increased. Imports unexpectedly fell for the fifth month in a row. Business with the USA grew by 5.7 percent, with China by 1.5 percent, and with Great Britain by 5.6 percent. However, the German export industry is showing signs of stabilization as the barometer for export expectations rose in November.

Falling exports are having a negative impact on the German economy and companies. The export-dependent industry in particular is suffering from the weak global economy. The poor economy, the increase in key interest rates by many central banks due to high inflation and the associated increase in the price of loans are hindering the development of the export economy. This dampens the demand for German export hits such as machines, systems or vehicles. However, on a positive note, export expectations are improving, indicating possible stabilization.

These developments could lead to a further decline in exports and reduced economic growth in the short term. In the long term, however, they could lead to an adjustment of export strategies and increased efforts to diversify sales markets. This could help make German companies more resilient to future economic challenges.