The German electrical and digital industry is once again feeling the effects of weaker demand from abroad. The most important trading partner is also holding back.
The German electrical and digital industry is suffering from weakening demand from abroad. In May, exports shrank by 7.6 percent to 18.7 billion euros, according to the industry association ZVEI in Frankfurt. “After the previous temporary increase in April, the recent decline in deliveries means that the recovery in electrical foreign trade is still being delayed,” said ZVEI chief economist Andreas Gontermann. From January to May 2024, exports from the important industrial sector totaled 102.9 billion euros, a decrease of 2.9 percent.
The reason for this is a decline in business with all major industrialized countries, including the USA, France and China, according to the ZVEI. Deliveries to the People’s Republic, the largest buyer country for the German electrical industry, fell by 5.3 percent to 2.1 billion euros in May after growth in the previous months.
Imports of electrical products to Germany fell by 10.5 percent to 19.3 billion euros in May, even more than exports. In the first five months, imports amounted to 104.1 billion euros – 8 percent less than in the previous year.
With a turnover of around 238 billion euros and more than 900,000 employees in 2023, the electrical and digital industry is one of the largest industrial sectors in Germany.
Source: Stern
