Sentiment among German exporters improved in February, although only a few sectors expected exports to increase, according to a survey by the Ifo economic institute released on Monday.
The institute’s export expectations indicator rose to minus 7.0 points in February, from minus 8.5 points in January.
“The German export industry is currently hardly benefiting from global economic development,” Klaus Wohlrabe, head of surveys at Ifo said, adding there is still a lot of room for improvement.
While the food industry and glass and ceramics manufacturers continue to forecast export growth, mechanical engineering expectations fell to their lowest level since June 2020.
Weakness in exports also continues to hit car manufacturers and the metal sector, the study said.
German exports as a whole fell in 2023 by 1.4 percent due to the global economy groaning under numerous burdens, caused by high inflation, increased interest rates and international crises.
German exports fell more than expected in December due to weak global demand, data from the federal statistics office showed on Monday, underlining concerns about the health of Europe’s biggest economy that may be slipping back into recession.
Germany’s ailing economy had a bumpy start to the year with exports sinking, farmers launching nationwide protests, train drivers striking for days and heated debates among coalition partners on how to foster economic growth.
Exports fell by 4.6 percent in December compared with the previous month. The result compared with a forecast 2.0 percent decrease in a Reuters poll.
Exports to EU countries fell by 5.5 percent compared with the previous month, while exports to countries outside the EU declined by 3.5 percent, the office said.
Imports fell by 6.7 percent from November, the federal statistics office reported, versus analysts’ expectations for a 1.5 percent decline. – Reuters
