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- German machinery exports shrink in 2019 - VDMA
German machinery exports shrink in 2019 - VDMA
The Mechanical Engineering Industry Association (VDMA) said that weak industrial production worldwide and growing protectionism have left their mark on the export balance of mechanical engineering companies from Germany. In 2019, the companies exported goods with a total value of 179.8 billion euros.
According to provisional figures from the Federal Statistical Office, German machinery exports were thus 1.5 percent below the previous year's figure in real terms. Not adjusted for prices, machinery exports barely reached stagnation. With an export quota of almost 80 percent, mechanical engineering companies from Germany continue to have a strong presence on the world market, but also depend on its development.
"In particular international trade disputes, increasing protectionism and the brexite hangover as well as the far-reaching structural change in the automotive industry have led to uncertainty and a reluctance to invest in many industries," explained VDMA economic expert Olaf Wortmann. "In view of the current order intake of mechanical engineering companies, a renewed decline in exports is likely for the whole of 2020," he predicted.
Between January and December, exports to the United States, the number one target country for German machinery exporters, rose by a nominal 4.3 percent to 20.1 billion euros. The USA thus accounts for 11.2 percent of total German machinery exports. However, the momentum slowed significantly in the course of the year. "This is not least because the trade dispute between the USA and China has also weakened industry in the United States," explained Wortmann.
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