| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €20.4B | €17.8B | €17.7B |
| Imports - M/M | 1.9% | -1.2% | -1.1% |
| Imports - Y/Y | -12.1% | -14.4% | -14.3% |
| Exports - M/M | 3.7% | -0.2% | -0.4% |
| Exports - Y/Y | -4.9% | -5.0% | -4.9% |
Highlights
The seasonally adjusted merchandise trade balance saw a €20.4 billion surplus in November, up from October's marginally smaller revised €17.7 billion. This was its strongest performance since January 2021. Unadjusted, the black ink stood at €22.0 billion, a marked improvement on the €13.0 billion a year ago.
The headline expansion reflected a 3.7 percent monthly jump in exports, their first rise since August and the steepest increase since February 2022. Imports were up 1.9 percent following five successive declines. Unadjusted annual growth of the former now stands at minus 4.9 percent, unchanged from the October rate, and of the latter at minus 12.1 percent, up from minus 14.3 percent.
Despite the November's advance, the trend in the trade surplus remains broadly flat and policymakers will be hoping for a stronger performance by exports to boost what is likely to be a sluggish German economy in 2024.
The headline expansion reflected a 3.7 percent monthly jump in exports, their first rise since August and the steepest increase since February 2022. Imports were up 1.9 percent following five successive declines. Unadjusted annual growth of the former now stands at minus 4.9 percent, unchanged from the October rate, and of the latter at minus 12.1 percent, up from minus 14.3 percent.
Despite the November's advance, the trend in the trade surplus remains broadly flat and policymakers will be hoping for a stronger performance by exports to boost what is likely to be a sluggish German economy in 2024.
Definition
The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.
Imports indicate demand for foreign goods and services in Germany. Exports show the demand for German goods in countries overseas. Given the size of the German economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
Imports indicate demand for foreign goods and services in Germany. Exports show the demand for German goods in countries overseas. Given the size of the German economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
