Germany finds export success outside the EU
Germany's global exports are driving growth. | EPA/INGO WAGNER
Contrary to economists’ expectations German exports increased in August by 2.4% from July this year, with the value of commodities sent overseas reaching €90.1 billion, from figures released by the Federal Statistics Office.
When compared to a year ago in August 2011, exports have risen considerably by 5.8%, which may fend off calculations that German growth is set to fall in the third and fourth quarters of this year.
The European Union (EU) member states accounted for the largest amount of trade with €48.7 billion in exports, of which €30.4 billion worth of goods was exported to the euro area and €18.3 billion in the non-euro area, a decrease of 3.1%, and an increase of 6.8% respectively from a year ago.
So called ‘third countries’, with €41.4 billion worth of goods being exported outside of the EU, made up the rest of the export total.
Imports in total reached €73.8 billion, an increase of 0.4% from a year ago, with €45 billion being received from the EU, where €31.5 billion arrived from the euroarea, and €28.8 billion from global markets outside the EU.
Matthias Schaefer, head of the department of economic policy at the think tank Konrad Adenauer-Stiftung, said: “I think that the export market is in good shape and meeting the regional demands, There is a strong presence from Germany in different regions in the world where they have economic relations stretching from Latin America, the European Union and Eurozone and into South East Asia.”
“This gives Germany economic stability and there has been an export gain due to the ability to perform across different sectors in different global markets, and will compensate for imports decreasing in countries such as China.”
“I can imagine that the German reputation is a factor due to the long period of experience in foreign markets and the trade relations in them. The products are specific and special and the demand for them in across global regions is stable which is why the economy is going up rather than down. The innovation process of German companies is what makes what they produce more and more special.” Added Schaefer.
Success in markets outside of the European Union has resulted the most significant gains from exports since August last year, with trade activity in ‘third countries’ increasing by 13%. This is due to the increase of trade with the BRIC countries and other emerging economies.
“There are many up and coming economies who Germany is now trading with” Explained Dick Mohr of the German Federal Statistics Office, who is responsible for information on exports.
“We are able to export raw materials, oil and natural gas to our clients with the raw material markets especially increasing and the imports decreasing. Another factor is that in emerging markets the demand for cars in rising and that means business for German companies. As for the drop in trade with the euroarea its harder to see what the full picture really is in August, as its holiday season for enterprises and days off are taken, we will know more in September and October.”
The rise in exports resulted in a favourable foreign trade balance with a surplus of €16.3 billion for August this year, once this figure had been adjusted seasonally and in calendar terms, the surplus increased to €18.3 billion, an improvement on the excess of €11.6 billion from a year ago.
Provisional results from the Deutsche Bundesbank revealed that the current account of balance of payments weighed firmly in Germany’s favour, with a surplus of €11.1 billion, an increase from the €7.9 billion figure of 12 months ago. As the foreign trade balance was offset by negative figures for balance of services at – €3.9 billion, current transfers – €3.5 billion, and supplementary trade items – €2.6 billion.
German growth for the second quarter of this year dipped slightly to 0.3%, fuelling the IMF to reduce its growth forecast to 0.9% for this year and for the whole of next year, in a revision of the previous estimate of 1.4% for 2013.
“We expected a downturn in these export results due to the situation globally, and as the IMF stated growth may be reduced in the near and medium term future in Germany and globally, so the export market will possibly not perform as well in the coming months. There is also the influence of the €ozone, and what will be a negative effect on the export market.” Schaefer concluded. / new europe on line
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