July marks end of negative trend in German electronic exports

 

While Germany’s export of electronic goods was below the previous year’s level in the first six months of 2024, they increased by 2.1 per cent in July. There was no notable change in imports, while figures differ greatly for within and outside of the euro area.

Exports by the German electrical and digital industry rose in July 2024. Compared to the previous year, they increased by 2.1 per cent to 19.8 billion euros. “While the negative performance of the sector’s deliveries abroad in the first half-year has now been slowed down in July, in the first seven months of this year taken together the aggregated exports were still on the decline, namely by 2.9% to 143.9 billion euros,” says ZVEI (Electro and Digital Industry Association Germany) Chief Economist Dr. Andreas Gontermann. In contrast to exports, no increase in imports of electrical and electronic goods into Germany was recorded in July. However, they did not fall further either, remaining at the previous year's level of 20.3 billion euros (0.0%). In the first seven months of 2024, electrical equipment imports fell significantly by 7.9 per cent to a cumulative value of 145.5 billion euros.

Electrical equipment exports to the eurozone fell by 2.9 per cent year-on-year in July 2024 to 6.1 billion euros. On the one hand, industry exports to Spain (+8.4% to 712 million euro), Belgium (+7.0% to 430 mn), Greece (+4.8% to 77 mn), Slovenia (+4.0% to 73 mn) and Slovakia (+3.4% to 233 mn) increased. On the other hand, July saw a decline in deliveries to France (-0.1% to 1.2 billion euro), Austria (-5.6% to 806 million), Ireland (-5.9% to 45 mn), Italy (-6.6% to 890 mn), Portugal (-8.4% to 179 mn) and the Netherlands (-9.7% to 1.1 bn). Exports to Finland fell by a double-digit 18.5 per cent in July to 130 million euros. From January to July 2024, industry’s exports to the euro area amounted to 47.7 billion euro, 6.6 per cent down on the same period of the previous year.

The sector’s deliveries to countries outside the euro area performed comparatively better in July. They grew by 4.5 per cent to 13.7 billion euro. Exports of electrical and electronic equipment to the United Kingdom (+12.3% to 849 million euros), the Czech Republic (+12.1% to 748 mn) and South Korea (+10.2% to 297 mn) rose particularly strongly. “After a rather divergent development in the first half of the year, shipments to China and the United States rose at the same rate in July,” says Gontermann. “The former rose by 5.3 per cent to 2.2 billion euros and the latter by 5.2 per cent, also to 2.2 bn.” Exports to Hungary (+4.8% to 654 million euros), Sweden (+4.5% to 350 mn) and Romania (+0.4% to 413 mn) were also up on the previous year. In July, exports to Japan (-0.7% to 262 million euro), Switzerland (-1.3% to 655 mn), Poland (-8.1 to 813 mn), Turkey (-15.9% to 329 mn) and Taiwan (-21.4% to 239 mn) were reported. From January to July, however, electrical exports to third countries receded by 2.9 per cent overall to 96.2 billion euro.

 

Caption 1: The foreign trade report September 2024 paints a brighter picture for the German industry of electrical goods.

Source: Electro and Digital Industry Association Germany
www.zvei.org