| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €19.7B | €13.4B | |
| Imports - M/M | -3.3% | -0.1% | -0.3% |
| Imports - Y/Y | -5.2% | 4.3% | |
| Exports - M/M | 2.1% | -2.8% | -2.9% |
| Exports - Y/Y | -6.5% | 0.4% |
Highlights
German trade data for November 2024 revealed that exports grew by 2.1 percent month-over-month, reaching €127.3 billion, while imports fell 3.3 percent to €107.6 billion, leading to a trade surplus of €19.7 billion. However, year-over-year figures reveal a contraction, with exports down 3.5 percent and imports falling 2.9 percent, reflecting ongoing global trade challenges.
Trade with EU member states underperformed, with exports dropping 1.7 percent and imports declining 4.4 percent compared to October 2024. Within the eurozone, exports fell by 2.1 percent and imports by 5.2 percent, underscoring weaker intra-European demand. In contrast, trade with non-EU countries surged, with exports to third countries rising by 6.9 percent, driven largely by a 14.5 percent jump in shipments to the United States (€14.0 billion). Conversely, exports to China declined by 4.2 percent, reflecting weaker demand.
Energy disruptions and geopolitical tensions continue to impact trade with Russia, where exports rose 21 percent month-over-month but remained modest at €0.7 billion. Imports from Russia plunged 24.1 percent, highlighting the ongoing decoupling from its market.
Despite monthly gains, shrinking year-over-year trade volumes suggest economic headwinds, including inflationary pressures and supply chain challenges, are curbing growth potential in Germany's export-driven economy. The latest update takes the RPI to 24 and the RPI-P to 10, meaning that economic activities are generally ahead market expectations.
Trade with EU member states underperformed, with exports dropping 1.7 percent and imports declining 4.4 percent compared to October 2024. Within the eurozone, exports fell by 2.1 percent and imports by 5.2 percent, underscoring weaker intra-European demand. In contrast, trade with non-EU countries surged, with exports to third countries rising by 6.9 percent, driven largely by a 14.5 percent jump in shipments to the United States (€14.0 billion). Conversely, exports to China declined by 4.2 percent, reflecting weaker demand.
Energy disruptions and geopolitical tensions continue to impact trade with Russia, where exports rose 21 percent month-over-month but remained modest at €0.7 billion. Imports from Russia plunged 24.1 percent, highlighting the ongoing decoupling from its market.
Despite monthly gains, shrinking year-over-year trade volumes suggest economic headwinds, including inflationary pressures and supply chain challenges, are curbing growth potential in Germany's export-driven economy. The latest update takes the RPI to 24 and the RPI-P to 10, meaning that economic activities are generally ahead market expectations.
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.
