Germany's foreign trade performance in March 2025 reflects a cautiously optimistic recovery, with exports rising by 1.1 percent month-over-month and 4.3 percent year-over-year to reach €133.2 billion. Meanwhile, imports declined by 1.4 percent compared to February, but still showed a 3.9 percent annual increase, totalling €112.1 billion. This divergence resulted in a widened trade surplus of €21.1 billionup from €17.9 billion in February and slightly above March 2024's €20.5 billion.

The EU remained Germany's primary trading partner, with exports to EU countries increasing by 3.1 percent, especially to eurozone members (3.8 percent). Imports from EU states, however, fell significantly by 3.5 percent, suggesting a temporary easing in domestic input demand or improved production efficiency. Trade with non-EU countries was mixed: exports declined by 1.1 percent, but imports rose by 0.8 percent.

The United States and China stood out: exports to China surged by 10.2 percent, while imports from China jumped 9.6 percent, reaffirming China's role as Germany's top supplier. Interestingly, trade with Russia saw notable percentage gains from low bases, reflecting shifting geopolitical dynamics.

Overall, the March 2025 figures suggest strong external demand for German goods, especially in high-value sectors, helping stabilise the trade balance amid global uncertainties. The latest update takes the German RPI to 35 and RPI-P to 38, meaning that economic activities are well ahead of market expectations in Germany.

The goods trade balance is expected wider at E19.0 billion versus E17.7 billion in February.

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.