While trade talks have been front page news in China, Japan, the US, and of course the European Union, Germany surprised markets with a March increase in exports which rose 1.5% from February and 1.9% from the same month a year earlier, a report that does not do a lot for the negotiating position of Bonn. Europe’s largest economy is now showing strong resilience in the face of challenges from tariffs and other trade issues that arise in a more fragmented world.
This article was sourced from the EU Powerhouse, information from the Financial Times. While just escaping a recession in the second half of 2018, Germany is now set to see its economy rebound in 2019 as exports are robust. Germany exported 118.3 billion euros of goods and imported 96.5 billion euros of goods in March. putting its trade balance, seasonally adjusted at 20 billion euros for the month.
This type of surplus is going to make Germany a target in trade talks in the coming year when it negotiates with the United States. Despite this positive news, the overall trade situation and the outlook for 2020 and beyond is deteriorating and this is having negative impact on the German corporate outlook and forecast of top executives.