German exports rebound in January

German exports rebounded in January after sharp declines in recent months, data showed Friday, with shipments to all major trading partners rising in a boost for Europe’s top economy.

Germany exported goods worth 130.6 billion euros ($138.5 billion), a 2.1 per cent increase on the previous month, according to seasonally adjusted figures from federal statistics agency Destatis.

Compared to January 2022, exports were up 8.6 per cent.

But ING economist Carsten Brzeski cautioned that the increase was “not quite enough to offset” a sharp drop in shipments from the export-driven economy in December.

“In the very near term, the ongoing weakening of export order books, the expected slowdown of the US economy, high inflation and high uncertainty will leave a clear mark on German exports,” he said.

In January, exports to the United States rose 3.1 per cent and those to China, Germany’s biggest trading partner, were up 1.4 per cent to China, according to Destatis.

Shipments to European Union countries increased by 0.7 per cent.

Exports to Russia, which has been hit with a barrage of Western sanctions over its invasion of Ukraine, climbed 12.3 per cent in January on the previous month, though their value remains relatively small.

Imports into Germany fell 3.4 per cent in January compared to the previous month, to 113.9 billion euros, notably due to a six percent decrease from China.

The German economy has been hammered by Russia’s invasion of Ukraine and Moscow’s subsequent move to curb crucial gas exports, a source of cheap energy that German manufacturers had long relied on.

But a raft of government relief measures and efforts to diversify energy supplies have helped blunt the crisis, and many economists now expect any recession this year to be short and shallow.

The government predicts economic growth of 0.2 per cent for the whole of 2023.