German export market in free-fall down 23% from same time last year

GERMANY’S EXPORT market is in free-fall, dropping by almost a quarter in February compared to a year previously – the most dramatic collapse in 60 years.

Figures released by Germany’s statistics office yesterday showed exports totalled €64.8 billion in February, down 23 per cent from the same time last year year.

“This is the second-highest drop since the introduction of statistics in 1950,” said a spokesman for the statistics office.

It follows a 23.2 per cent drop in exports in January compared to the same month last year.

Separate figures from the economic ministry showed German manufacturing orders down 38 per cent on February 2008.

Exports to EU countries – two-thirds of the total – were down 24.4 per cent, compared to a 20.6 drop from non-EU countries.

The collapse of Germany’s exports has had a knock-on effect on imports, which shrank 16.4 per cent in February to €56.2 billion.

Exporter association BGA said yesterday’s figures reflected a “massive worldwide slump” that will result in, on average, a 15 per cent drop in profits for its members.

That would be the first slump in 16 years and the greatest in post-war history.

Officials at the German chamber of industry and commerce (DIHK) said that seasonally adjusted export figures were less dramatic, showing a 0.7 per cent export drop in comparison to January.

“German exports continue to be very weak but the collapse has clearly been braked,” said Axel Nitschke, DIHK export chief, to Reuters.

“We are hopeful that this will begin to stabilise, if at a very low level.”

Germany’s trade surplus fell to €8.9 billion in February 2009, down from €17.1 billion a year ago.

After falling into recession in the third quarter last year, analysts predict that Europe’s largest economy will contract by between 3 and 7 per cent this year.

Finance minister Peer Steinbrueck has also said the government cannot stand by a forecast for a contraction of only 2.25 per cent this year. Since the second World War, the economy has never contracted by more than 1 per cent in a single year.