Germany has posted increased exports in the latest sign of economic recovery emerging within the eurozone following its worst slump since records began.
Nevertheless, trade remains well-below pre-COVID levels, signalling the long road back to normality.
On Wednesday morning, Germany’s national statistics agency released figures which show that sale of German-made goods jumped by 4.7 per cent in July when compared to June. The Guardian reported that the “pick-up in global demand echoes the strong exports reported by China on Monday”.
Through the latest figures, Germany’s economy is returning to growth, after shrinking by around 10 per cent between April and June. Despite the recovery, imports and exports in Germany, Europe’s manufacturing powerhouse, are still 11 per cent lower than the same period last year.
It was also noted that imports increased marginally by 1.1 per cent, resulting in Germany’s trade surplus further widening.
Germany’s statistics body, Destatis, also noted that Germany’s trade with China has rebounded, with imports from the UK decreasing by a quarter, when compared with July 2019. It cited the impact of COVID-19 for the slump in UK imports.
In its explanation, Destatis wrote:
“The degree to which year-on-year exports were affected depended on the trading partner. Exports to the People’s Republic of China decreased by just 0.1% to €8.7bn in July 2020 compared with July 2019. Exports to the United States, which have been hit particularly hard by the coronavirus pandemic, dropped by 17.0% to €9.3bn. Compared with the same month last year, exports to the United Kingdom showed a decrease of 12.6% to €5.5bn in July 2020.
“In July 2020, most imports came to Germany from the People’s Republic of China. Goods to the value of €10.3bn were imported from there, which was a 7.4% increase compared with July 2019. Imports from the United States fell by 14.8% to €5.2bn in July 2020. German imports from the United Kingdom were down 24.8% to €2.4bn.”