German exports to countries outside the European Union fell by 7.6 percent in July. The German statistical office Destatis reported this. It is the first export decline outside the EU after three consecutive months of increases.
The United States remained the leading trading partner for German exporters outside the EU in July. Exports of German goods to the US market rose by nearly 15 percent last month. On the other hand, exports to Russia plummeted in July by 56 percent compared to a year ago. That is because of the Western sanctions against Moscow because of the Russian invasion of Ukraine.
German exports to China rose 6.1 percent in July. As a result, the German economy became more dependent on China in the first half of 2022, despite political pressure on the German government to become less dependent on that country.
The German Ministry of Finance already warned last Friday of gloomy economic prospects. Europe’s largest economy stagnated in the second quarter, and rising energy prices and supply chain disruptions are looming on the horizon.
German producer prices, an indicator of future inflation, also rose fastest in July. This is mainly the result of the high energy prices that manufacturers pass on to their customers. The German economy is thus struggling with rising costs and weakening growth.