The German trade surplus is falling amid world trade tensions
Friday – 1 month Spring of the first 1440 e – 09 November 2018 AD Edition [
Berlin: Middle East
German trade surplus declined in September to reflect the largest economy in Europe hit by global trade tensions, reaching 17.6 billion euros (about $ 20 billion) from 18.2 billion euros in August.
The news release of the Federal Bureau of Statistics, published yesterday, focuses on US President Donald Trump's criticism of the German trade surplus with his country.
The Statistics Office said exports adjusted for seasonal factors fell by 0.8% in September, while imports fell by 0.4%. A survey by economists from Reuters indicated an increase in exports of 0.3 percent and an increase in imports by 0.8 percent.
The German newspaper The Guardian said that German exports in September were lower than in the same month of 2017 by about 1.2 percent, despite the growth of the global economy in that period.
German exports of plant units suffer from US trade protectionism, with tariffs for European steel exports. Data on trade in the largest European economy showed signs of slowing down this year. It is expected that this trend will clearly be shown in GDP for the third quarter of this year, which will be announced in the coming days.
Economic growth in Germany recorded high rates in the second quarter of this year to 2.3 percent, up from 1.4 percent in the first quarter, but the Bundesbank said that data from the third quarter could reflect temporary frozen growth.
Moody's said yesterday that the slowdown in world trade will not only affect growth in the United States and China, but also in economies such as Germany. German news agency in the context of the recent trade data presentation, that exports "recently met with a very unfavorable wind".
"Bearing in mind many uncertainties, especially due to direct and indirect consequences of trade disputes, we are looking forward to the end of the year," said Holger Bingmann, President of the Federal Federation for Wholesale, Foreign Trade and Services.
The German decline in German exports during September was the strongest month since February, and the new sign of the German economy was hit by a slowdown in global trade, the Financial Times said. Fall in imports this month was the second monthly decline, respectively.
German export data were mostly weak last year, with a decline of nine months over the past 12 months, according to the article. German exports have been hit by a slowdown in trade and measures such as the new rules on car emissions, says Carsten Brzezek, economist economist ING.
Although Bloomberg agency pointed out that the decline in exports in September was a pessimistic indicator of the economy following positive data released a few days ago, reflecting an increase in German orders and industrial production in the same month.
Bloomberg quoted the German central bank that the slowdown in the third quarter is a result of the temporary difficulties faced by the auto industry and the expected recovery in the coming period. But the agency added that rising trade volumes or a global slowdown could jeopardize recovery. Blumberg said that any US action to raise tariffs on European cars or spare parts would have a strong impact on Germany, stressing that the EU and the United States are working to reach an agreement to avoid such actions. The US trade deficit with Germany amounted to 65 billion euros in 2017, while US imports of German goods worth about 118 billion dollars, with vehicles and spare parts, and especially industrial machinery and drugs.
Economics of Germany