German exports unexpectedly fall, investor morale plunges
Germany's trade surplus is declining due to geopolitical shifts and aggressive actions by the US and China.
This is the conclusion reached by the Institute for Macroeconomics and Business Cycle Research (IMK) of the Hans Böckler Foundation, News.Az reports.
According to the Federal Statistical Office of Germany, the country's foreign trade balance deteriorated by 21.2 percent from January to July. The decline was due to a decline in export volumes and an increase in imports from several countries. The most significant declines were in exports to the United States and China, and an increase in imports from these countries.
According to MIK Research Director Sebastian Dullien, these foreign trade data demonstrate how seriously the German economy has been hit by current geoeconomic shifts. "These events are driven by aggressive industrial and trade policy actions by China and the United States," the economist stated.
The expert explained that the US chose a tariff strategy, while China spent years seeking dominance in key economic sectors.
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