War in Ukraine and Corona in China burden German exports

Created: 05/04/2022, 12:53 p.m

The aerial photo shows numerous containers on the premises of a container terminal in the port of Hamburg.

© Daniel Reinhardt/dpa

The export of "Made in Germany" to Russia collapses in March.

German industry is also concerned about the situation in the important Chinese sales market.

Wiesbaden - The economic consequences of the Ukraine war and the corona lockdown in parts of China left scars on the German export balance in March.

Exports of goods increased compared to the same month last year, but compared to February they fell by 3.3 percent after calendar and seasonal adjustment, as the Federal Statistical Office announced on Wednesday in Wiesbaden.

"The supply chain disruptions caused by the war in Ukraine and the People's Republic of China's zero-Covid strategy are having a massive impact on foreign trade," explained Dirk Jandura, President of the BGA Foreign Trade Association.

German industry fears a downward spiral for the export economy.

"Due to the war in Ukraine and the Chinese government's zero-Covid strategy, dark clouds are gathering over the German economy," said Joachim Lang, CEO of the Federation of German Industries (BDI).

The global supply chains are already under massive pressure.

"A gas embargo also hovers over companies like the sword of Damocles - with incalculable social, economic and security policy consequences."

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Exports to Russia fell by 62.3 percent to 0.9 billion euros in March compared to the previous month due to the sanctions and other export restriction measures.

Imports from the Russian Federation only fell by 2.4 percent to 3.6 billion euros.

Russia mainly supplies raw materials and energy.

Exports to China fell by 4.3 percent

Exports to the important US market rose by 3.2 percent to 11.5 billion euros.

Exports to China, on the other hand, fell by 4.3 percent to 9.1 billion euros.

Next to the USA, the country is the largest single market for goods "Made in Germany".

The most important sales region is the European Union.

"Interrupted supply chains and price jumps as well as a weakening global economy are leading to great uncertainty in the German export economy, which is likely to persist for a few more months," said Volker Treier, foreign trade head of the German Chambers of Industry and Commerce (DIHK).

"The only ray of hope seems to be demand from the USA, but our companies are very worried about China."

Altogether, in March 2022, Germany exported goods worth 120.6 billion euros after calendar and seasonal adjustments.

That was 8.1 percent more than a year earlier.

Imports rose by 20.3 percent to 117.4 billion euros.

In the first three months of the current year, exports increased by 10.1 percent to 362.7 billion euros, imports climbed by 22.7 percent to 339.4 billion euros.

Last year, Germany's exporters more than made up for the slump in the Corona crisis with a record result.

According to Thomas Gitzel, chief economist at VP Bank, German exports are now in danger of getting out of step.

The international environment is clouding over.

“Supply chain difficulties, high inflation and rising interest rates are not exactly ingredients for rising exports.

The economic path ahead is a rocky one.” dpa