German trade performance in October 2025 shows a positive picture, driven by steady export growth and a widening trade surplus. Exports edged up by 0.1 percent to 131.3 billion euros, while imports fell by 1.2 percent to 114.5 billion euros, creating a robust surplus of 16.9 billion euros. Year-over-year, exports rose by 4.1 percent, signalling resilience in global demand, whereas imports increased more moderately at 2.8 percent, pointing to softer domestic consumption.

Trade dynamics within the EU were notably strong, with exports and imports both rising by almost 3 percent, suggesting that regional partners remain Germany's most stable commercial anchors. In contrast, trade with non-EU economies weakened. Exports to the United States, China, and the United Kingdom fell sharply, indicating cooling demand in key external markets.

China remained Germany's largest import source despite a monthly decline, while imports from the United States and the UK dropped significantly. Trade with Russia continued its structural contraction, reflecting ongoing sanctions and reduced energy flows.

In essence, October's figures reveals that Europe is strengthening Germany's trade position, but global market volatility continues to reshape its external economic relationships. These updates take the RPI to 21 and the RPI-P to 25, meaning that economic activities continue to outpace expectations in Germany.

The consensus sees the surplus nearly flat at E15.7 billion versus E15.3 billion in September.

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.