Germany's foreign trade performance in August 2025 reflected slowing export momentum amid as exports declined by 0.5 percent compared with July and by 3.9 percent year-over-year (unadjusted), while imports fell by 1.3 percent month-over-month but rose 1.0 percent (unadjusted) compared with August 2024. Consequently, the trade surplus narrowed to €17.2 billion, down from €21.9 billion a year earlier, suggesting weaker external competitiveness and softer foreign demand.

Trade with EU partners contracted, with exports to the bloc dropping 2.5 percent and imports falling 1.9 percent. Within this, trade with eurozone countries declined modestly, whereas non-euro EU trade saw sharper contractions. In contrast, exports to non-EU countries rose 2.2 percent, signalling stronger engagement with global markets outside Europe. However, exports to the United States fell 2.5 percent, marking the fifth consecutive decline and a steep 20.1 percent drop year-over-year, highlighting subdued transatlantic trade. Conversely, exports to China grew 5.4 percent, suggesting partial recovery in Asian demand.

Despite marginal gains from non-EU trade, the overall downturn in exports and persistent import growth indicate external headwinds, particularly from weaker US demand and a sluggish EU economy, pressuring Germany's trade balance and manufacturing-driven growth outlook. This latest update takes the RPI to 0 and the RPI-P to minus 3, meaning that economic activities continue to perform within the expectations of the German economy.

The trade surplus is expected at E15.2 billion versus E1.7 billion in July.

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.