Germany Suffers the Biggest Drop in its Exports in 70 Years

The paralysis of the economy due to the crisis leads German exports to collapse in April by 31.1% year-on-year and 24% compared to March.

Germany exported goods and services worth 75.7 billion euros in April, 31.1% less in year-on-year terms, which is the biggest drop in seventy years, and fell 24% compared to March, according to provisional data released today by the Federal Statistical Office (Destatis).

This is the largest year-on-year drop since the start in 1950 of the statistical record of exports and compared to the previous month it is also the largest since the beginning of the historical series in August 1990, the statement said.
In March, exports were already down 7.7% year-on-year, and 11.7% compared to the previous month due to the Covid-19 coronavirus pandemic.

Sales from Germany to third countries, those that do not belong to the European Union (EU), contracted in April by 27.0% year-on-year to 37.5 billion euros.

Exports to member countries of the euro area fell 36.7% year-on-year to 26.4 billion euros, while those of the EU that do not share the common currency fell 29.9% to 11.8 billion.

Exports in year-on-year terms were affected to a greater or lesser extent according to the trading partner.

Thus, while exports to China fell by 12.6% to 7.2 billion euros in a relatively moderate way, in the case of countries particularly hit by the coronavirus pandemic, such as France, Italy and the United States, they contracted 48 , 3%, 40.1% and 35.8%, respectively.

Germany imported goods and services worth 72.2 billion euros in April, representing a drop of 21.6% year-on-year and 16.5% compared to March.

It is the largest year-on-year drop in imports since July 2009, during the financial crisis, when they fell by 23.6% year-on-year, and compared to the previous month it is the largest contraction since the beginning of the historical series in August 1990.

In March, imports were down 4.4% year-on-year, and 5.0% compared to the previous month.

Most of the imports in April came from China, an economy from which goods and services worth 9,400 million euros were imported, which is 10% more in interannual terms.

Imports from the United States grew by 2.4% year-on-year in April to 5.9 billion euros.

Meanwhile, imports from France and Italy decreased by 37.3% and 32.5%, to 3.5 billion and 3.2 billion euros, respectively.

The first European economy accumulated a trade surplus of 3.5 billion euros, compared to 17.8 billion in the same month of 2019, although if the seasonal and calendar effects are corrected, the surplus stood at 3.2 billion euros in April.

It was Germany’s smallest trade surplus since December 2000, when it was € 1.7 billion.

Reviewer overview

Germany Suffers the Biggest Drop in its Exports in 70 Years - /10

Summary

The paralysis of the economy due to the crisis leads German exports to collapse in April by 31.1% year-on-year and 24% compared to March.

0 Bad!