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🇩🇪 Germany /Economy & Trade

German exports fall, but electrical industry reports surge in orders

From Der Spiegel · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • German exports fell 0.8% from the previous month to €138.2 billion in July, after five consecutive monthly increases, as demand from Europe and China weakened.
  • Exports rose 6.1% from July 2025, including a 19.1% increase in shipments to the United States, while exports to China fell 9.5%.
  • Business groups said the recovery remained uncertain, although the Ifo Institute reported the strongest export expectations in four and a half years, driven partly by European demand and the artificial intelligence boom.

Germany’s export industry has suffered a setback after five consecutive monthly gains. Exports fell 0.8% in July from the previous month to €138.2 billion, the Federal Statistical Office said, as weaker demand from Europe and China weighed on shipments.

The export industry is no longer a drag on the German economy, but it is not yet its driving force either.

· Michael HerzumUnion Investment’s chief economist assessed Germany’s export performance and outlook.

The annual comparison was more encouraging. Exports stood 6.1% above their level in July 2025. Shipments to European Union member states fell 1.6% from June to €78 billion, while the United States remained the largest destination for exports to a single country. German companies sent goods worth €14.4 billion to the US, an increase of 19.1%.

China moved in the opposite direction. German exports there dropped 9.5% to €5.6 billion. Volker Treier, head of foreign trade at the Association of German Chambers of Industry and Commerce, attributed the pressure to weak global economic conditions and a sharp increase in Chinese competition. Michael Herzum, chief economist at Union Investment, said the export industry was no longer holding back the German economy, but had not yet become its driving force. He said positive surprises remained possible in the second half of the year, but not an export boom.

Positive surprises are possible in the second half of the year, but not an export boom.

· Michael HerzumHerzum described the prospects for German exports.

The Ifo Institute offered a more hopeful outlook. Exporters were more optimistic about the coming months than at any point in the past four and a half years, supported by stronger European business and demand for German technology in data-center construction. “The export economy is picking up speed,” said Ifo survey chief Klaus Wohlrabe. The BGA, however, said it was still too early to describe the recovery as stable and called for reforms to strengthen Germany’s business location and reduce companies’ burdens.

The export economy is picking up speed.

· Klaus WohlrabeThe Ifo survey chief cited improving exporter expectations.

The engineering association VDMA issued a separate warning about industrial research moving abroad. It said 69% of surveyed member companies planned to expand research and development activities overseas. Deputy managing director Hartmut Rauen called the figure a clear warning for Germany’s industrial base, citing falling revenues and high location costs despite continued investment at domestic headquarters.

This is a clear warning signal for Germany as an industrial location.

· Hartmut RauenThe VDMA deputy managing director reacted to companies’ plans to expand research abroad.
About this summary

Originally published by Der Spiegel in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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