San Francisco Frontiers - German exports drop in setback to fragile recovery

Exports slipped 2.3 percent from the previous month to 130.5 billion euros ($152 billion), according to preliminary data from statistics agency Destatis, due to falls in shipments to China and Europe.

Analysts surveyed by financial data firm FactSet had expected a decline of two percent.

After three bleak years, hopes are high that the eurozone's industrial powerhouse will stage a recovery this year on the back of a public spending bonanza unleashed by Chancellor Friedrich Merz.

Despite some positive signs in past months, the export data provides a dampener that indicates a turnaround may not be quick.

In January exports to China, Germany's top trading partner in 2025, dropped over 13 percent.

Traditionally a key export destination for German firms, China has become a challenging market due to an economic slowdown and the rise of homegrown rivals in key sectors.

Exports to fellow European Union countries also fell nearly five percent.

But in more positive news, shipments to the United States -- Germany's top export destination -- rebounded nearly 12, after having suffered heavily in 2025 due to President Donald Trump's tariff blitz.

Imports to Germany also dropped nearly six percent in January, driven by a fall in purchases from the United States and China.

German imports were valued at 109.2 billion euros in January. The trade surplus widened to 21.2 billion euros.

H.King--SFF