Germany's Trade Surplus Misses Forecasts

(MENAFN) Germany's trade surplus shrank far more sharply than anticipated in March, as a surge in imports overwhelmed modest export growth, official data showed Friday — a result that will intensify scrutiny of Europe's largest economy amid mounting global trade pressures.

The country's trade surplus contracted to €14.3 billion ($16.8 billion) last month, down from €19.6 billion in February, the Federal Statistical Office (Destatis) reported. The reading significantly undershot market expectations of €17.8 billion.

Exports edged up 0.5% month-on-month to €135.8 billion, but imports surged 5.1% to €121.5 billion — a gap that tells the real story behind the surplus erosion. On an annual basis, exports climbed 1.9% compared with March 2025, while imports jumped 7.2%, according to provisional figures.

Trade Within the EU Holds Firm — Outside It, Cracks Appear
Within the bloc, German exports to EU countries rose 3.4% from the prior month to €78.4 billion, with imports from those nations climbing 3% to €61 billion. Exports specifically to euro area members advanced 4.1% to €54.8 billion, while imports from those countries increased 1.7% to €40.8 billion.

The picture outside Europe was considerably weaker. Exports to non-EU countries dropped 3.3% month-on-month to €57.4 billion, even as imports from those markets jumped 7.4% to €60.5 billion — a widening deficit that reflects shifting global demand and trade friction.

U.S. Slump Deepens: Sharpest Annual Drop Since COVID-Era June 2020
The United States retained its position as Germany's top export destination in March, yet shipments there fell 7.9% from February to €11.2 billion. Year-on-year, exports to Washington collapsed 21.4% — the steepest annual decline since June 2020, when pandemic-era disruptions paralyzed global commerce.

Exports to the UK bucked the trend, rising 3.2% month-on-month to €7.4 billion, while shipments to China slipped 1.8% to €6 billion.

China Tightens Grip as Germany's Top Import Source
On the import side, China cemented its standing as Germany's largest supplier, with inbound goods rising 4.9% from February to €15.6 billion. Imports from the US declined 3.7% to €8 billion, while those from the UK surged 11.7% to €3.5 billion.

The March data paints a complex picture for the German economy — resilient intra-EU trade offset by a deteriorating relationship with its two most strategically significant non-European partners, the US and China.

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