Germany’s foreign trade surplus has risen to its highest level in two years. Getty Images
Germany’s export surplus rose to its highest level in two years in November.
Exports exceeded imports by more than 20 billion euros. A higher export surplus was last achieved in January 2021.
The positive development is driven by low prices in foreign trade. Companies can charge higher prices for exports. At the same time, prices have fallen, especially for energy imports.
Germany’s foreign trade surplus rose to more than 20 billion euros in November, its highest level in two years. In the first eleven months of 2023, the German export surplus of 187 billion euros was already more than twice as high as in the whole of 2022. The contribution of foreign trade to economic performance in Germany is therefore back to the level before Russia’s attack on Ukraine and the following one Energy price crisis reached. This is based on new figures Federal office of statistics out.
In November, companies from Germany exported goods abroad worth 131.2 billion euros. This was offset by imports worth 110.8 billion euros. The foreign trade balance ended with a surplus of 20.4 billion euros. The last time there was a higher export surplus was in January 2021 at 21 billion euros. The following graphic makes the positive development clear.
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Compared to the previous month of October, German foreign trade improved noticeably in November. Exports increased by 3.7 percent, while the import bill only increased by 1.9 percent. The surplus consequently grew from 17.7 billion to 20.4 billion.
In a year-on-year comparison, the picture is more mixed. In November, exports were 5.0 percent below the same month last year. At the same time, imports actually fell by 12.2 percent year-on-year. As a result, the surplus jumped from 11.9 to 20.4 billion euros. The increase in the trade surplus is currently being driven less by strong exports than by cheaper imports.
Export surplus: USA more important than China
Price effects are primarily behind the lower imports. A year ago, Germany had to pay record prices for its energy imports. Meanwhile, prices for oil, gas and coal on world markets have fallen significantly.
The prosperity and economic growth in Germany depend to a particularly high degree on success in foreign trade. It is therefore important how successful German companies are with their products abroad. However, the relationship between prices for exports and imports also has a major influence. The exchange ratio is also called the terms of trade. In the crisis year of 2022, high energy prices deteriorated the terms of trade for Germany to such an extent that the export surplus almost completely melted away in a few months.
By far the most important thing for Germany is trade within the European Union. Here Germany achieved an export surplus of 12.6 billion euros in November. Outside the EU, Germany has a surplus of 7.8 billion euros. The largest export market outside the EU is the USA. German companies export goods there worth 13.4 billion euros. After China it is around eight billion euros. China is again the most important supplier country outside of Europe. Germany imported goods worth 13 billion euros from China in November. Germany is running a large deficit in foreign trade with China.
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