FRANKFURT: German exports dived in March, the official statistics agency said Wednesday, as outgoing trade with Russia tumbled in the wake of the invasion of Ukraine.
Exports dropped by 3.3 percent on the previous month to a value of 120.6 billion euros ($126.8 billion), Destatis said, having risen by a revised figure of 6.2 percent in February.
Sanctions imposed against Russia by Western countries, including Germany, led exports to the country to plunge by 62.3 percent on the previous month to 0.9 billion euros.
A wave of companies shut their operations and halted exports to Russia, with which German business has traditionally maintained strong business ties.
Germany pledges 10bn euros for cooperation with India
Following the invasion, Russia dropped to 26th place among Germany's export partners, having sat in the 15th spot just a month ago.
Meanwhile, exports to China, among Germany's most important trading partners, suffered a considerable 4.3-percent drop, as the Asian giant managed a series of punishing lockdowns as it battles to control the spread of the coronavirus.
The release was "first hard data on the economic impact from the war in Ukraine", said Carsten Brzeski, head of macro at the ING bank, adding that the outlook for exports "doesn't look encouraging".
New lockdowns in China and the aggravation of supply bottlenecks caused by the war in Ukraine "will leave significant marks on German industry", Brzeski said.
Overall, exports to non-European Union countries were down by 5.1 percent, while inside the bloc the figure fell by 1.7 percent.
At the same time, imports to Germany rose by 3.4 percent on the previous month, up to a value of 117.4 billion euros.
Comments
Comments are closed.