Berlin (Reuters) – The mood among German exporters brightened in June in anticipation of the end of the corona pandemic.
The barometer for export expectations of the industry climbed from minus 26.7 points in the previous month to minus 2.3 points, as the Munich Ifo Institute announced on Thursday, citing its survey of 2,300 companies. This is the strongest increase within a month that has been determined so far. “German industry works its way out of the basement,” said Ifo President Clemens Fuest.
The upward trend from the previous month continued in the automotive industry. “Manufacturers expect a significant increase in exports in the next few months,” it said. The same applies to the pharmaceutical industry. No growth in exports is yet expected in the other sectors, although the mood here has also brightened noticeably. In the chemical industry, companies expect constant exports. In electrical engineering and mechanical engineering, falling foreign sales are still expected.
The corona-related recession with important trading partners such as the USA, France and Italy is causing problems for exporters. The World Trade Organization assumes that the global trade in goods will collapse between 13 and 32 percent this year due to the pandemic. This hits European export champion Germany particularly hard. The WTO expects strong growth of 21 to 24 percent in 2021. However, it warns that surprisingly weak global economic growth, higher trade barriers and a second wave of infections could prevent a strong recovery. In the case of 2021, the trade would possibly only grow by five percent.