After 30 Years, Germany's First Foreign Trade Deficit

Germany posted a foreign trade deficit for the first time in 30 years due to cost increases in the import process.

As a result of the analysis made by the German Federal Statistical Office (Destatis), seasonally and calendar adjusted exports in the country decreased by 0.5 percent to 125.8 billion euros in May compared to the previous month, despite expectations of a 0.9 percent increase. Imports increased by 2.7 percent to 126.7 billion euros in May. In this way, Germany's seasonally and calendar adjusted foreign trade deficit increased to 1 billion euros. It recorded a trade deficit for the first time since 1991. Germany; Compared to May 2021, exports increased by 11.7 percent and imports increased by 27.8 percent. While 67.5 billion euros of May exports in the country were realized to European Union (EU) countries, 61.8 billion euros of imports were provided from the European Union. Oliver Rakau, Economist at Oxford Economics in Frankfurt, said: "It is not surprising that exports are falling in these circumstances. For imports, it is necessary to focus especially on price developments." According to May 2021 data, exports to European Union countries decreased by 2.8 percent, while imports from these countries increased by 2.5 percent.

---

You may also be interested in this: Huge Contraction in US Foreign Trade Deficit In the US, the foreign trade deficit decreased from 107.6 billion dollars to 87.08 billion dollars in April due to the increase in exports and the decrease in imports. The trade deficit recorded a major contraction with these figures. In the statement made by the US Department of Commerce, the foreign trade deficit fell by 20.6 billion dollars in April to 87.1 billion dollars. https://ieconomy.io/abd-dis-ticaret-aciginda-buyuk-daralma/