German exports seen stabilising in third quarter

21 Nov 2019

German exports German exports were seen stabilising towards the end of the third quarter, the finance ministry reported on Thursday. 
It also added however, that weakening global growth and increasing trade threats for Europe’s largest economy signal only moderate growth in the coming months. 

Germany’s export-reliant manufacturers are facing mounting pressure as foreign demand slows. The manufacturing sector is also struggling against a United States-triggered tariff war with China, as well as business uncertainty and political turmoil surrounding Brexit as the UK prepares to hold a general election on December 12. 

“Export activity gained some momentum towards the end of the third quarter,” said the finance ministry in its monthly report, noting however that business sentiment polls and industrial orders were hinting at a persistent pattern of weakening trade activity. 

“Given the weakening global economic momentum and persistent external risks (for trade), exports are likely to continue to develop only moderately,” said the ministry. 

Germany’s record-high employment rates and increasing wages continue to boost growth in the private consumption and construction sectors, while state spending is providing further aid for the eurozone’s largest economy, the ministry added.

During the third quarter, the German economy only just escaped tipping into a recession, as it recorded almost three consecutive quarters of contraction. State spending, consumer sentiment and construction helped lift the economy by 0.1%. 

Official gross domestic product data will be published by the Federal Statistics Office on Friday, which will provide further insight on how much household consumption, government spending, private sector investment and foreign demand have supported the German economy to narrowly avoid another quarter of losses. 

 

Read today's latest Brexit news updates - Corbyn launches election manifesto