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Economy: German economy increases exports surprisingly strong

2021-01-08T08:35:19.423Z


The lockdown did surprisingly little to German industrial companies. Thanks to the great demand from China, exports rose sharply.


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Port in Qingdao, China: high demand thanks to the special Corona economy

Photo: imago images / VCG

The exports of German industry grew for the seventh month in a row in November, despite the second Corona wave with tightened restrictions at many trading partners.

In particular, the booming business in China caused exports to rise by an unexpectedly strong 2.2 percent compared to the previous month, as the Federal Statistical Office announced on Friday.

Economists polled by Reuters had only expected 0.8 percent, after 0.9 percent in October.

Despite the race to catch up, exports remained 4.7 percent below the level of February 2020 - the month before the start of the corona-related restrictions.

"Apparently, despite the lockdown, the economy got away with less than one black eye in the fourth quarter," said the chief economist of Bankhaus Lampe, Alexander Krüger.

"Exports to China in particular are booming," said VP Bank's chief economist Thomas Gitzel, one reason for this.

These grew by 14.3 percent in November 2019 to 9.3 billion euros.

"China is benefiting from a special Corona economy," said Gitzel.

The demand for German cars is increasing there, while German mechanical engineers are also in demand with their products.

"Once again it is clear that if China is doing well, Germany will benefit," said the economist.

The chances are not bad that foreign business will pick up further.

The export-dependent industry collected more orders from home and abroad for seven months in a row, with demand from the eurozone increasing particularly significantly recently.

The recovery of the global economy from the recession year 2020, predicted by many experts, should also play into the cards of exporters.

Imports grew 4.7 percent in November and are only 0.6 percent below the pre-crisis level of February.

In the meantime, the companies increased their production, also in view of the full order books in the industry than before the crisis broke out in February 2020.

The entire production - industry, construction and energy suppliers together - increased according to the Federal Ministry of Economics by 0.9 percent compared to the previous month.

Here economists had expected 0.7 percent, after 3.4 percent in October.

"The outlook for the industrial economy remains cautious in view of the pandemic and the tightened lockdown, but the order situation and the mood in companies have recently improved," said the ministry.

"This suggests that, unlike last spring, the industry is less affected by the measures."

The industry's production expectations for the coming months have recently deteriorated somewhat.

The corresponding barometer fell to 4.5 points in December, after 5.6 in November, according to the Ifo Institute's business survey.

»The picture in the branches is very different.

However, production cuts are rarely planned, ”said Ifo expert Klaus Wohlrabe.

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mik / Reuters

Source: spiegel

All business articles on 2021-01-08

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