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Significant recovery in German exports, but less than expected

Significant recovery in German exports, but less than expected

Germany released today showed that exports witnessed a significant recovery in May, compared to the sharp collapse in the figures for April, but the large recovery of exports remained less than expected due to its impact on weak global demand.

The seasonally adjusted export index in Germany for the month of May increased by 9%, compared to a sharp drop during the month of April by 24%, while expectations were for a rise of 13.8%.

On the other hand, imports edged up by 3.5% from a previous decline of 16.6%. Analysts were in favor of a 12% surge.

This recovery in German exports came after the lifting of the closing procedures in Germany and many countries around the world, which helped companies and factories return to work and compensate for the previous collapse in demand.

But the most credible opinion remains in the markets that the pre-corona economic situation may take a longer period of time and this depends mainly on the return of global demand to recovery.

German exports to China decreased by 12.3% compared to May of last year, and exports to the United States also dipped 36.5% over the same period.

The strength of export figures was reflected in the trade balance in Germany during May, as it showed a surplus of 7.6 billion euros after a surplus in April of 3.4 billion euros. Expectations were for a trade surplus of 5.2 billion euros.

As for the euro, it was able to rise and record the highest level against the dollar in four weeks at 1.1369, before returning to trading near the opening levels at 1.1326.

 

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