German trade surplus declines: FRANKFURT According to official figures released on Thursday, Germany’s much-touted trade surplus decreased in 2022 as rising energy costs during the Ukraine war increased the cost of imports.
German exports totaled 1.56 trillion euros ($1.7 trillion), up 14% from a year earlier, according to seasonally adjusted data from the federal statistics agency Destatis.
However, imports increased by more than 24 percent to 1.48 trillion euros, creating a 76 billion euro trade surplus.
According to Destatis, it was “the lowest surplus” since 2000 and down more than 50% from the 173.3 billion euro total from the previous year.
Following Russia’s invasion of Ukraine, the cost of imports surged even more, according to the agency, “on account of the steep increases in energy prices.”
The largest economy in Europe’s trade surplus has shrunk for five years running, it was revealed.
While China continued to be the leading source of imports, the United States remained the top market for “made in Germany” products.
In light of US plans for a significant subsidy package to green its economy, there is rising concern about the competitiveness of European businesses at this time of declining surplus in export powerhouse Germany.
The European Union is putting up ideas to mitigate the threat, including perhaps loosening the restrictions on state aid.
The BDI industry association in Germany demanded “rapid, tangible outcomes” on the matter on Thursday.
In order to diversify commercial relations, it also advised the government to pursue trade agreements at the level of the EU with “major partners” including nations in Latin America, India, or Indonesia.
It stated that “the objective must be to advance the internationalization of the German economy.”