Eng
In July, Germany’s exports suffered a decline amid a sharp drop in demand from the U.S. triggered by tariffs. Meanwhile, industrial production grew.
Exports from Europe’s biggest economy fell by 0.6% in July from the previous month, data from the Federal Statistics Office shows. Exports to the U.S. dropped by 7.9% compared to June. Germany’s export-driven economy is expected to be hit hard by U.S. import tariffs. In 2024, the U.S. was Germany’s largest trading partner, with the value of bilateral trade in goods reaching EUR 253 billion (USD 297 billion).
In contrast, Germany’s exports to other EU countries rose by 2.5% during the month. Hopes are high that exports from Germany to other eurozone countries will increase, meaning the overall decline in exports would not hinder economic growth to the extent suggested by worst-case scenarios.
Industrial production in Germany rose by 1.3% in July compared to June. Commerzbank expects production to increase amid interest rate cuts undertaken by the European and other central banks.
Source: reuters.com