GERMAN exports dipped in May after a small rebound in April, official data showed today, adding to a gloomier outlook for Europe’s biggest economy.

Germany shipped goods worth €130.5 billion (RM661.7 billion) in May, according to data published by federal statistics agency Destatis, down 0.1% compared with April.

Imports rose by 1.7% to €116.1 billion in May, narrowing the trade surplus to €14.4 billion.

“Trade is no longer the strong resilient growth driver of the German economy it used to be,” said ING bank economist Carsten Brzeski.

“Sluggish exports are no longer an exception but rather the new normal.”

The weaker demand for “made in Germany” goods was led by a 3.6% fall in exports to the United States, Germany’s biggest export destination.

Shipments to European Union countries dropped by 1.5%, but those to China ticked up by 1.6%.

Most imports to Germany once again came from China, and were up 2.7% on the month before.

The German economy has been hit by a series of weak data in recent weeks, dampening hopes of a swift recovery after the energy crisis and high inflation tipped the country into a recession at the turn of the year.

Leading economic institutes expect the German economy to shrink by 0.2 to 0.4% this year.

“The ongoing weakening of export order books, the expected slowdown of the US economy, high inflation and high uncertainty will leave clear marks on German exports,” said Brzeski. – AFP, July 4, 2023.