| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €20.7B | €19.7B | €19.2B |
| Imports - M/M | 2.1% | -3.3% | -2.7% |
| Imports - Y/Y | 1.9% | -5.2% | -4.8% |
| Exports - M/M | 2.9% | 2.1% | 2.3% |
| Exports - Y/Y | -0.2% | -6.5% | -6.2% |
Highlights
Germany's foreign trade ended 2024 with a measured recovery, as exports rose by 2.9 percent and imports increased by 2.1 percent in December, compared to the previous month. This modest rebound helped maintain a trade surplus of €20.7 billion, though slightly lower than December 2023 (€21.1 billion).
Trade within the EU proved robust, with exports soaring 5.9 percent and imports rising 3.6 percent. Eurozone partners led the way, with exports increasing 6.7 percent, demonstrating the continued strength of intra-European trade. However, trade with non-EU countries showed mixed signals, as exports dipped 0.5 percent, reflecting weaker demand from key global markets.
The United States remained Germany's top export destination, though shipments fell 3.5 percent, signalling potential economic cooling. Exports to China rose slightly by 1.4 percent, while UK-bound exports suffered a significant 6.6 percent decline. Trade with Russia continued its downward spiral, with exports plunging 19.9 percent from November and 17.1 percent year-over-year.
The outlook for 2025 hinges on geopolitical stability, supply chain dynamics, and demand recovery in major markets. This update takes the German RPI to minus 9 and the RPI-P to 7, meaning that economic activities are within market expectations of the German economy.
Trade within the EU proved robust, with exports soaring 5.9 percent and imports rising 3.6 percent. Eurozone partners led the way, with exports increasing 6.7 percent, demonstrating the continued strength of intra-European trade. However, trade with non-EU countries showed mixed signals, as exports dipped 0.5 percent, reflecting weaker demand from key global markets.
The United States remained Germany's top export destination, though shipments fell 3.5 percent, signalling potential economic cooling. Exports to China rose slightly by 1.4 percent, while UK-bound exports suffered a significant 6.6 percent decline. Trade with Russia continued its downward spiral, with exports plunging 19.9 percent from November and 17.1 percent year-over-year.
The outlook for 2025 hinges on geopolitical stability, supply chain dynamics, and demand recovery in major markets. This update takes the German RPI to minus 9 and the RPI-P to 7, meaning that economic activities are within market expectations of the German economy.
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.
