German foreign trade falls sharply in April, likely to record better figures in May

German exports and imports of goods virtually collapsed in April, like new orders and industrial production, owing to the corona pandemic and the measures taken to contain it. Exports fell 24 percent, while imports dropped 16.5 percent on a month-on-month basis.

Deliveries to other EU nations dropped more sharply than deliveries to nations outside the EU. Deliveries to EU countries fell 34.8 percent, whereas exports to nations outside the EU fell 27 percent. Exports to China dropped by a comparatively small 12.6 percent compared with the same month of the previous year, while deliveries t France were not more than about half as much as a year ago. This indicates that the low exports were apparently not only slowed down by domestic restrictions on production, but also by lower demand in trade partner nations due to the corona pandemic, noted Commerzbank in a research report.

“As with orders and production, foreign trade figures for May are not expected to be quite as bad. According to the German Association of the Automotive Industry (VDA), car exports in May returned to around 35% of their pre-crisis level, after coming to a virtual standstill in April. In view of the after-effects of the crisis, however, it will take some time here – as in the case of foreign trade as a whole – before the slump is fully made up for”, added Commerzbank.