FRANKFURT, Feb 5 — German exports fell sharply in December on weaker demand from eurozone countries, official data showed today, capping a disappointing year in foreign trade for Europe's largest economy.
Exports totalled €125.3 billion (US$135 billion) in December, a 4.6-per cent plunge on the previous month, federal statistics agency Destatis said.
Analysts surveyed by FactSet had forecast a smaller drop of 2.4 per cent.
Imports declined even more sharply by 6.7 per cent to total €103.1 billion, widening the trade surplus to €22.2 billion.
The export plunge was driven by a six-per cent drop in shipments to fellow eurozone countries. The decline was partly offset by a 3.5-per cent rise in demand for "made in Germany" goods from outside the European Union.
For 2023 as a whole, exports were down 1.4 per cent year-on-year, Destatis said, while imports slumped by nearly 10 per cent.
The German economy has long relied on global trade to power growth but supply chain frictions, higher energy costs and cooling demand from key markets including China have all weighed heavily on the export powerhouse in recent months.
Elevated inflation and higher interest rates have also taken their toll, hitting the crucial industrial sector particularly hard.
The headwinds caused the German economy to shrink by 0.3 per cent in 2023.
The German central bank expects a modest improvement in 2024, predicting growth of 0.4 per cent as inflation eases and demand picks up again. — AFP
