German exports declined by 2.3% in January compared to the previous month, following a 4.0% increase in December. Imports dropped even more sharply by 5.9%, which widened the trade surplus to €21.2 billion, the highest since the summer. This data contributes to a challenging beginning for the German economy in the new year.
The latest trade figures released for Germany show a downturn in external trade activity at the start of the year. Exports decreased by 2.3% month-on-month in January, reversing the 4.0% growth seen in December. Meanwhile, imports fell by 5.9% over the same period, leading to an expanded trade surplus of €21.2 billion—the largest since the summer months.
Carsten Brzeski, Global Head of Macro at ING, noted that these developments have dampened expectations for economic growth. He stated that while fiscal stimulus is anticipated to support acceleration later in the year, continued weak macro indicators could undermine this outlook. The January data underscores a broader sluggish performance across the German economy early in the year.
Despite the surplus widening, the overall drop in both exports and imports highlights potential vulnerabilities in demand, both domestically and internationally. Brzeski emphasized that optimism for growth prospects has been affected this week by these trends, though the long-term trajectory remains tied to policy measures.
