Germany's Export Expectations Declined in October

Negative Developments in Export Expectations in Germany

In Germany, as of October, companies' export expectations showed a significant decline. According to the export expectations survey results published by the Economic Research Institute (Ifo), the Industrial Export Expectations Index fell from 3.4 points in September to 2.8 points in October.

Drop After the Highest Level of the Year

The index, which reached its highest level of the year at 2.5 points in September, recorded a noticeable decline in October. Klaus Wohlrabe, Director of the Ifo Surveys Center, stated, "The German export sector is in a deadlock. There is no real recovery in sight," evaluating the situation.

Automotive Sector on the Rise

Despite this, the German automotive industry maintains its optimism regarding foreign trade, and the export expectations for this sector rose again in October. However, Germany's overall export performance shows weak growth due to decreased demand from the USA and China.

Export Figures and Foreign Trade

In the January-August 2023 period, merchandise exports increased by only 0.5% year-on-year, reaching 1 trillion 46 billion euros. In particular, due to the high tariffs imposed during the presidency of Donald Trump, Germany's exports to the USA declined by nearly 4% compared to past levels, falling to the lowest level in the last four years.

On the other hand, China’s long-standing increase in domestic production of many products that it used to import from Germany has also weakened the demand for German goods.