ZVEI – German electrical exports have recently been declining again

• Recovery in foreign trade delayed

Exports from the German electrical and digital industries were lower in May 2024 than they were a year earlier. Overall, they fell by 7.6 percent to 18.7 billion euros. 

“After the previous interim increase in April, the recent decline in deliveries means that the recovery in electrical foreign trade is still being delayed,” said ZVEI chief economist Dr. Andreas Gontermann. 

Cumulatively from January to May, aggregate industry exports totaled 102.9 billion euros, a decrease of 2.9 percent compared to the previous year.

Imports of electrical and electronic products to Germany fell more sharply than exports, falling by 10.5 percent to 19.3 billion euros in May. In the first five months of this year, combined imports amounted to 104.1 billion euros, 8.0 percent below the previous year.

“Despite the comparatively greater decline in imports compared to exports, the German electrical goods foreign trade balance remained slightly negative so far this year,” said Gontermann. 

The German electrical and digital industry delivered goods worth 12.0 billion euros to industrialized countries in May 2024. That was 8.7 percent less than a year earlier. The only increase in May was in exports to Denmark, which rose by 9.6 percent to 256 million euros.
 

In contrast, declines were reported in business with all other major industrialized countries. Deliveries to the USA (-3.0% to €2.0 billion), the Czech Republic (-3.2% to €795 million), South Korea (-4.7% to €284 million), France (-8.0% to €1.1 billion), Spain (-8.2% to €641 million), the UK (-8.4% to €717 million), Japan (-8.5% to €217 million) and Belgium (-9.8% to €409 million) fell. There were double-digit declines in exports to Sweden (-10.2% to €395 million), the Netherlands (-10.9% to €1.1 billion), Switzerland (-12.0% to €592 million), Austria (-16.9% to €747 million) and Italy (-19.0% to €814 million). The decline in exports to Taiwan was particularly pronounced (-28.0% to €219 million).
In the entire period from January to May 2024, electrical exports to the group of industrialized countries totaled 66.3 billion euros – a decrease of 4.6 percent compared to the previous year.

“But deliveries to China, the largest buyer country for the German electrical industry, also fell by 5.3 percent to 2.1 billion euros in May, after the previous months of the current year had mostly brought growth here,” said Gontermann.

In May 2024, the German electrical and digital industry supplied emerging markets with goods worth 6.7 billion euros. This was a decrease of 5.5 percent compared to the previous year.
 

Industry deliveries to South Africa and India recorded increases, rising by 1.8 percent to 132 and 252 million euros respectively. 
In contrast, exports to Malaysia (-1.7% to 194 million euros), Turkey (-3.0% to 339 million euros) and Romania (-5.4% to 413 million euros) fell slightly. Exports to Poland (-7.7% to 843 million euros), Mexico (-9.0% to 277 million euros), Brazil (-10.0% to 141 million euros) and Hungary (-13.4% to 586 million euros) fell more sharply. The collapse in exports to Thailand was particularly pronounced, with a decline of 21.7 percent to 91 million euros.
 

Cumulative electrical exports to the group of emerging countries from January to May amounted to 36.6 billion euros, 0.4 percent higher than in the same period last year.