Germany: Exports rise in July, providing some relief for the staggering economy
The external sector opened the third quarter on a stronger footing, with exports expanding 0.7% month-on-month in July, which was up from the 0.1% drop in June. On the other hand, imports dropped 1.5% month-on-month, contrasting the 0.7% increase in June. The trade surplus consequently widened from EUR 17.9 billion in June to EUR 20.2 billion in July.
The same trend was observed in year-on-year data, with exports swinging from an 8.0% contraction in June to a 3.8% expansion in July; the 12-month moving sum of exports, however, eased to 1.0% over the same period a year earlier in July from 1.3% in the prior in the month. Imports, meanwhile, fell 0.9% in the same month, improving from the 4.2% drop in June. In the 12 months to July, imports increased 3.6% in July over the same period a year prior, down from the 4.7% expansion in the month prior. Subsequently, the 12-month moving sum of the trade balance widened from a EUR 219 billion surplus to a EUR 222.7 billion surplus.
Dr. Holger Bingmann, president of the Federation of German Wholesale, Foreign Trade and Services (BGA), stated that although the external sector started the second half with a slight boost, “this is no reason for the all-clear, because the many risks and confrontations (…) persist.” Moreover, Bingmann noted that now is the time for the political establishment to help the private sector, “our companies finally need a tax system that does not put them at a disadvantage in international comparison, but rather supports their competitiveness.”