Germany's trade surplus widened to EUR 20.7 billion in December 2024, up from a downwardly revised EUR 19.2 billion in November, surpassing forecasts of EUR 17 billion.
German trade surplus largest in four months
This marked the largest trade surplus since August, signaling a robust performance in the country’s external trade. Exports unexpectedly grew by 2.9% month-on-month, reaching an eight-month high of €131.7 billion in December, defying expectations of a 0.6% decline. This marked the second consecutive month of growth in exports, and the fastest pace of expansion since January 2024, driven by strong demand from European Union countries. Exports to EU countries rose by 5.9%, with particularly strong sales to the Euro area, which increased by 6.7%, and to the non-Euro area of the EU, which grew by 3.9%. This growth in European exports underscores the region’s importance to Germany’s external trade and the continued demand for German products across key EU markets.
Sales to third countries dip
However, sales to third countries showed a slight dip, decreasing by 0.5% overall. Notably, exports to major markets outside the EU, such as the US, fell by 3.5%, while shipments to Russia dropped significantly by 19.9%, likely due to ongoing geopolitical tensions. Exports to the UK also declined by 6.6%, reflecting ongoing post-Brexit challenges. These drops in sales to key third-country markets highlighted some external pressures on Germany's exports, particularly in the face of global economic uncertainties and changing trade relationships.
Import rise
On the import side, Germany saw a 2.1% rise in imports, reaching EUR 111.1 billion, slightly exceeding forecasts of 1.8% growth. The increase in imports was driven by higher purchases from the European Union, which rose by 3.6%, reflecting Germany's integration within the EU’s supply chain and the demand for raw materials and intermediate goods from neighboring countries. Imports from third countries grew by 0.5%, with notable rises from the US (3.0%) and Russia (14.4%). The increase in imports from these countries may reflect Germany's continued reliance on specific goods and raw materials from both regions, despite geopolitical tensions.
Full-year data
For the full year 2024, Germany posted a substantial trade surplus of €241.2 billion, reinforcing the country’s position as one of the world’s largest exporters. This surplus highlights Germany’s competitive edge in manufacturing and engineering, especially in sectors such as automotive, machinery, and industrial products. The positive trade balance, particularly driven by strong export growth to the EU, underscores the resilience of Germany’s external sector, even amid global uncertainties and fluctuations in demand from third-party markets. The country’s strong performance in international trade positions it well for continued economic stability in the coming years, although challenges from geopolitical tensions and global trade disruptions remain.
