German Exports Slump in May Amid Weak Global Demand

German exports experienced a sharper-than-expected decline in May, as weak demand from major trading partners such as China, the U.S., and other European countries weighed on the nation’s economic performance.

According to data released by the federal statistics office, exports fell by 3.6% in May compared to the previous month, exceeding analysts’ forecasts of a 1.9% decrease. This decline underscores the challenges faced by the German economy amidst a sluggish global economic landscape.

Despite the drop in exports, Germany’s foreign trade balance maintained a surplus of 24.9 billion euros ($26.94 billion) in May. However, this figure represents a slight decrease from the 22.2 billion euro surplus recorded in April and the 16.8 billion euro surplus in May of the previous year.

The decline in exports was widespread, with shipments to both EU countries and non-EU countries experiencing contractions. Exports to EU countries decreased by 2.5%, while exports to countries outside the EU fell by 4.9%.

This latest data highlights the vulnerability of the German economy to fluctuations in global demand. The slowdown in major economies like China and the U.S. has had a significant impact on German exports, raising concerns about the country’s economic outlook.