In a reflection of weaker global demand for German goods, Germany's trade surplus narrowed in July by more than expected. The adjusted trade surplus, which represents the difference between exports and imports of goods, fell to 15.9 billion euros ($17.13 billion) in July compared to 18.7 billion euros in June, according to data from the country's statistics office Destatis.
Weaker Exports and Stronger Imports
In July, exports declined by 0.9% on a calendar and seasonally adjusted basis to reach 130.4 billion euros. This decline in exports is attributed to a retreat in global demand for Germany's manufactured goods, such as cars, car parts, and industrial appliances. It was expected that exports would fall by 1.5%, but the actual decrease was lower than anticipated.
On the other hand, imports experienced a stronger increase than expected, rising by 1.4% compared to the anticipated 0.5% growth.
Economic Slowdown Concerns
The narrowing trade surplus suggests that Germany's economy is feeling the impact of the broader economic slowdown. As global demand weakens, the country's export-focused industries are facing challenges. This data supports concerns surrounding the German economy and raises questions about its ability to overcome the current economic headwinds.
Overall, the trade balance was narrower than the expected 17.0 billion euros, according to a survey of economists conducted by the Wall Street Journal.