German Exports Surge, Driven by US Trade Rebound
Berlin - German exports experienced an unexpected increase in September, rising 1.4% month-over-month, according to data released by teh German Federal Statistical office (Destatis).The growth, exceeding analyst expectations of a 0.5% rise, was largely fueled by a significant rebound in trade with the United States following a revised customs agreement between the european Union and the US governance.
This marks the first increase in exports to the US in five months, with a jump of 12% recorded for September. The improvement follows the EU’s approval of a new 15% tariff on most goods exported to America, a reduction from the previous 20%. Despite the gains, German exports to the US market remain 14% lower compared to the same period last year.
German imports also increased by 3.1% after seasonal adjustments, leading to a contraction of the trade surplus to 15.3 billion euros (approximately $17.7 billion) – the lowest level since October 2024.
Exports to other European union countries continued to perform strongly, increasing by 2.5%. However, exports to China showed no significant improvement, reflecting ongoing weak industrial demand. Imports to Germany primarily originated from China, increasing by 6.1% on a monthly basis.
“The latest data indicate a timid recovery in the German economy after a arduous summer,” stated Carsten Brzeski, chief economist at ING Bank.”Factory production and industrial orders showed improvement in September.” He cautioned, though, that “headwinds remain strong, as the full effects of US tariffs are likely to appear in the coming months.”
The German government is preparing to invest billions of euros in defense and infrastructure projects following the easing of financial spending rules, aiming to bolster economic momentum amidst slowing global demand and ongoing supply chain disruptions. Business indicators suggest a gradual improvement in business confidence towards the end of 2025.
