Is the German economy starting to bounce back?

Imports and Exports | | MIC Customs Solutions |

Positive export figures from Germany have led to suggestions its economy could be fighting back against the effects of the pandemic.

There were tentative hopes for an economic recovery in Germany this week after new statistics showed exports have increased.

According to Destatis, sales of German-made goods went up by 4.7 per cent in July 2020 compared with June. This was above the 3.3 per cent forecast in a Wall Street Journal survey.

The figure was also far better than the ten per cent shrinking of the economy witnessed between April and June as the coronavirus pandemic took hold of Europe.

This corresponds with recent data from China, which showed a boost in exports last month and led to optimism about a pick-up in global trade demand.

However, experts have warned Germany still faces a long road back to normality, with imports and exports remaining around 11 per cent lower than a year ago.

German finance minister Olaf Scholz told Reuters: "We see progress in the economic recovery from the coronavirus shock, that's a good sign. But we have to fight the crisis with all our strength this year and next."

Despite faring far better than many of its European neighbors, Germany has nevertheless recorded around 9,000 deaths from COVID-19 and is concerned about a recent rapid rise in case numbers.