BERLIN, Dec 2 — German exports fell more than forecast in October, official data showed on Friday, as soaring inflation, waning foreign demand and strained supply chains raise the spectre of recession in Europe’s largest economy this winter.
Exports declined by 0.6 per cent on the month, twice as much as analysts predicted in a Reuters poll, the data from the Federal Statistics Office showed. Imports also dropped by 3.7 per cent in October, leading to a higher trade balance of €6.9 billion (RM31.9 billion). Imports had been forecast to drop 0.4 per cent.
The statistics office publishes a detailed table with more economic data.
The German chambers of commerce and industry (DIHK) said last month Germany’s exports are likely to fall 2 per cent next year due to a sluggish global economy, with nearly half of German companies that sell abroad expecting an economic downturn.
Also last month, German industrial group Thyssenkrupp warned that sales and profit will “nosedive” next year as high inflation and energy costs are compounded by expected recession in Europe.
However, data released last week showed the German economy grew slightly more in the third quarter than suggested by preliminary figures, adding to signs that a coming recession will not hit as hard as initially feared.
Near-full gas storages in Germany have abated fears of possible rationing in industry, while the 0.4 per cent growth in the third quarter pointed to a milder recession than many economists first expected.
A survey published on Thursday showed Germany’s manufacturing sector reported continued weaker demand in November but the downturn slowed as signs of fewer material shortages fuelled hopes that cost pressures could also ease. — Reuters
