Despite news about slipping into a recession end of May, Germany’s exports have achieved a clear recovery this year’s second quarter.

A report by German transport newspaper DVZ revealed that April exports grew by 1.2% compared to March, increasing to EUR 130 billion. After the sharp shrink in March, economists find the new development as “surprising” amidst relatively weak demand. A year-on-year comparison shows that total exports grew by 1.5%.

Economists, however, speculate that the increase in April is not a sign of trend reversal for Germany. Speaking to DVZ, Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade, Services (BGA), says, “Our exports have developed positively thanks to the improved economic situation in China and the USA.”

“Increased prices as a result of the fight against inflation cancel out the plus. So the situation seems better than it actually is,” Jandura adds.

On the other hand, Germany’s April imports fell by 1.7% compared to the previous month to EUR 112 billion, according to government statistics. Compared to 2022, imports fell by 10.3%.

DVZ noted that the United States was the largest buyer of German exports in April. The US bought nearly EUR 13 billion worth of goods, registering an increase of nearly 5%. A strong growth was also seen in trade with China in March, with a 10% growth to EUR 8.5 billion.

Economic reports published last month stated that the output of Germany, the largest economy in Europe, fell 0.3% in Q1 2023 after a contraction of 0.5% during the final months of 2022.

The country’s Federal Statistics office highlighted, “The persistence of high price increases continued to be a burden on the German economy at the start of the year.” It added that household consumption “was down 1.2% in the first quarter of 2023.”