FRANKFURT (dpa-AFX) - The sluggish global economy is weighing on German
exports, with newly released government data showing that sales of
'Made in Germany' products fell sharply in August.

Exports dropped by 5.8% in August compared to the same month last
year, and were also down 1.2% compared to the previous month,
according to figures released on Thursday by Germany's Federal
Statistical Office.

The data was adjusted for calendar and seasonal effects.

German companies shipped a total of ?127.9 billion ($134.5 billion)
worth of goods abroad, according to the Statistical Office.

Many German companies rely heavily on sales to foreign customers, and
global sales are a closely watched indicator for the country's
export-oriented economy.

Imports to Germany, meanwhile, amounted to ?111.4 billion in August -
an even sharper drop of 16.8% compared to the same month in 2022.
Compared to July, imports in August were down 0.4%.

'Ultimately, the weak exports should not come as a surprise, as the
global export volume has now been stagnating for two years,' said VP
Bank chief economist Thomas Gitzel.

German industry, with its high proportion of foreign customers, is
suffering as a result, Gitzel said.

'Exports were already clearly in reverse in July, and now we have to
accept a significant decline in August as well,' he said.

The export balance for the first eight months of 2023 was
nevertheless positive. The value of exported goods rose by 1.7% to
?1.05 trillion.

Last year, German foreign trade achieved a record nominal result,
partly due to significant price increases.

The impact of high inflation on the figures cannot be precisely
quantified, however, as the Statistical Office does not collect
price-adjusted data on foreign trade.


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