Germany's trade surplus increased to EUR 17.7 billion in February 2025, up from an upwardly revised EUR 16.2 billion in January, slightly below forecasts of EUR 17.8 billion. The surplus was driven by a stronger performance in exports, which grew more than imports during the month. Exports rose by 1.8% month-on-month to reach EUR 131.6 billion in January, marking the highest level in ten months.
German trade surplus widens in February
This increase came after exports showed no growth in the previous month, indicating a rebound in demand for German goods. The growth in exports was primarily supported by sales to EU countries, which rose by 0.5%, with notable contributions from both the Euro area (up 0.3%) and the non-Euro area (up 1.0%). Germany's trade with its European neighbors remained resilient, bolstered by continued demand for German industrial products, machinery, and technology.
Sales to third countries saw a more significant increase, expanding by 3.2%. The biggest contributors to this growth were the United States, with an 8.5% increase in exports, and China, which saw a 0.6% increase. The strong performance in exports to the U.S. can be attributed to continued demand for high-quality German products, especially in sectors like automotive, engineering, and machinery. Similarly, the increase in exports to China, despite some ongoing trade tensions, highlights the strong demand for German technology and industrial goods in the Chinese market. However, exports to the UK and Russia faced headwinds, with sales to the UK declining by 3.8% and to Russia by 3.0%, which could reflect the lingering effects of Brexit and geopolitical tensions, including sanctions that have impacted trade relations with Russia.
Imports increase
On the import side, Germany saw a 0.7% increase to reach a 20-month high of EUR 113.8 billion. This rise in imports was driven largely by purchases from the EU, which increased by 2.3%. Imports from the Euro area rose by 2.8%, while imports from the non-Euro area grew by 1.4%. This increase in imports was likely fueled by Germany's strong manufacturing sector, which requires a steady supply of raw materials, intermediate goods, and energy to maintain production. Meanwhile, imports from third countries fell by 1.0%, reflecting lower arrivals from key trading partners. The most notable declines were in purchases from the U.S. (-3.9%), Russia (-4.5%), and the UK (-5.2%), which could be attributed to the broader economic challenges facing these regions, such as rising inflation, supply chain disruptions, and ongoing geopolitical uncertainties. Despite these declines, imports from China rose by 7.1%, reflecting the continued importance of China as a critical supplier of goods, particularly in electronics, machinery, and other key industrial inputs.
Trade balance reflects a mixed picture
The overall trade balance reflects a mixed picture, with Germany’s export strength providing a buffer against the weaker performance of imports. Despite some challenges, such as the decline in imports from certain third countries and the softness in sales to the UK and Russia, the increase in exports, particularly to the U.S. and China, underscores Germany's strong position in the global marketplace. The trade surplus continues to be a critical element of Germany’s economic resilience, although ongoing global trade tensions and shifts in demand could influence future trade dynamics. As global economic uncertainties persist, Germany’s reliance on external markets will remain a key factor in shaping its economic outlook for 2025.
