Germany’s export economy heads for fourth record year in a row despite the strong euro. Exports rose by a strong 8.2 percent year-on-year in november to 116.5 billion euros, the federal statistical office said, based on preliminary results.
Exports increased by 4.1 percent within the space of a month. This is the strongest increase since december 2014 and more than analysts expected. Germany’s export-strong economy is benefiting from the global economic recovery, which is fuelling demand for "made in germany" products.
Machinery, cars and other goods worth 1.18 billion euros were exported in the first eleven months (plus 6.5 percent). In 2016 as a whole, the export companies achieved their third record in a row, with sales of 1.21 billion euros. The BGA trade association had recently expected record sales last year and this year.
"The strengthening of the euro exchange rate since april 2017 has not affected the german export sector," stated ING-diba chief economist carsten brzeski. Goods "made in germany" were in demand in many countries. Geographical diversity seems to be the key to success.
The most important region for german exporters is the european union. Despite the strength of the euro, exports to countries outside the community also increased in the first eleven months of the year. Rise in community currencies against dollar and co. Prices of "made in germany" products tend to rise outside the euro zone. This can steam demand.
According to brzeski, the most important single market for goods from germany continues to be the u.S., despite u.S. President donald trump’s criticism of germany’s trade surpluses with the united states.
Germany has been exporting more than it imports for years as a whole. This has repeatedly been criticized by other trading partners as well. The surplus of exports over imports amounted to 23.7 billion euros in november.
Imports, however, also rose strongly by 8.3 percent compared with the same month last year. In the first eleven months, there was an increase of 8.6 percent to 951.8 billion euros.
The german economy also impressed with strong industrial figures in november. The manufacturing sector expanded its production – by 3.4 percent compared with the previous month. "Production has made an impressive comeback after a two-month weak phase," said bayernlb economist stefan kipar. "There is hardly a cloud in the economic sky in germany at the moment."
Numerous bank economists and economic research institutes had recently revised their economic forecasts upwards. An initial estimate of how strongly the german economy grew last year will be released by the federal statistical office this thursday.