Germany's exports ticked up in January on robust trade with China but imports sank as coronavirus shutdowns sapped consumer demand in Europe's top economy, official data showed Tuesday.

Exports rose 1.4 percent month-on-month in seasonally adjusted figures, federal statistics office Destatis said.

Imports slumped 4.7 percent, widening Germany's closely-watched trade surplus to 22.2 billion euros ($26.3 billion).

Compared with a year ago, before the pandemic ravaged the global economy, exports fell 8.0 percent in January and imports almost 10 percent.

"Consumer demand fell sharply in January due to a lack of opportunities" as the government kept non-essential shops, leisure and cultural centres closed to rein in the coronavirus, said LBBW bank economist Jens-Oliver Niklasch.

But demand for "made in Germany" goods was powered by vital trade partner China, which has recovered faster from the virus shock.

Exports to European Union countries plunged six percent year-on-year, while demand for EU goods within Germany was down by almost the same.

The Brexit fallout continued to hurt commerce with the United Kingdom, with Destatis recording a 29 percent plunge in German exports across the Channel.

Demand for UK goods in Germany collapsed by more than 56 percent.

Cross-Channel exporters have had to adapt to new customs requirements from January 1, following Britain's 2016 decision to leave the European Union.

Firms on both sides have since complained of increased bureaucracy and shipment delays as they grapple with the new rules.

"Foreign trade with Britain has collapsed," said Niklasch.

Combined with Germany's struggles to bring down Covid-19 infections despite months of shutdowns, "the January reading is not an indication of renewed German export strength, but rather an alarm bell for the first quarter."

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Germany to fine companies violating rights
Berlin (AFP) March 3, 2021
The German government agreed Wednesday a new law allowing fines worth millions of euros for companies which abuse labour and environmental rights in their global supply chains, ministry sources said. Under the law approved by Chancellor Angela Merkel's cabinet, companies with annual revenues of 400 million euros ($484 million) or more can be fined up to two percent of that amount if their contractors abroad are found to breach human rights or environmental rules. Companies could also be excluded ... read more