German exports surge to record levels in June, outlook remains bleak


BERLIN—German exports rose 4.5% in June to a record high, but economists warned much of the increase was likely due to higher prices.

Exports rise for 3rd straight month, beating expectations of 1% increase, Germany’s seasonally adjusted trade surplus reaches €6.4bn ($6.51bn) in June, above consensus surplus of €2.7bn greatly surpassed

Germany posted its first trade deficit in more than 30 years last month, but May’s €1 billion figure was revised to a surplus of €800 million on Wednesday.

“These numbers shouldn’t be taken with a grain of salt,” said VP Bank’s Thomas Gitzel, who said higher prices could increase nominal exports even if no goods are actually exported. “Once prices are adjusted, there will be very little export growth left,” he said.

Germany’s economy stagnated in the second quarter, with war, a pandemic and supply disruptions in Ukraine pushing Europe’s largest economy to the brink of recession.

The German Association of Chambers of Commerce (DIHK) warned that Germany’s export-dependent industries faced a tough situation in the second half of the year.

“Supply chain disruptions and high costs of energy, raw materials and imported inputs continue to hamper production,” said DIHK foreign trade expert Carolin Herweg.

“Also, the economic slowdown in key export partners such as the United States, China and the eurozone is weakening demand for ‘Made in Germany’ products.”

Exports to Germany’s largest export market, the United States, increased by 6.2% in June compared to May, while exports to European Union member states increased by 3.9%. Exports to China he increased 2.4% in June.

Imports into Germany in June increased by 0.2% from the previous month on a calendar and seasonally adjusted basis, according to the Federal Statistical Office. Analysts polled by Reuters had noted a 1.3% increase from the previous month.

($1 = 0.9833 Euro)

Reuters

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