German Exports Fall for the First Time in 1.5 Years

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German exports fell in August for the first time since April 2020. Problems in logistics and shortages of raw materials in factories caused exports from Europe’s largest economy to fall by 1.2 percent compared to July, according to figures from the German Federal Statistical Office.

 

“Problems in global supply chains, high logistics costs and unresolved trade conflicts have huge implications for exports,” said the chief executive of the German industry lobby BDI, Joachim Lang. Earlier this week, figures were also published about the lower number of industrial orders and declining production in German industry.

In August, the value of German goods exports rose by more than 14 percent compared to the same month last year, when the corona crisis hampered production. Compared to February 2020, when there was no pandemic yet, exports have increased by 0.5 percent, according to preliminary figures.

The German mechanical engineering and automotive sectors are particularly affected by material shortages. There is a lack of semiconductors, wood and plastics. Backlogs in ports and a shortage of container capacity also hinder exports.

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