The seasonally adjusted merchandise trade balance recorded a robust surplus of €24.9 billion in May, up from €22.2 billion in April 2024 and €16.8 billion in May 2023. Exports fell by 3.6 percent in May compared to April, while imports dropped more significantly by 6.6 percent.

Unadjusted, the surplus stood at €22 billion, up from the €15.2 billion posted in May 2023. Nominal exports totalled €129.0 billion, down 3.8 percent from May 2023, while imports fell 10.0 percent to €107.0 billion.

This surplus growth, despite declining trade volumes, underscores Germany's resilient trade dynamics amid global economic fluctuations.

May's goods balance is expected to narrow to a €20.3 billion surplus versus a surplus of €22.1 billion in April.

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.

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.