German exports fall for second straight month

FRANKFURT: German exports fell for the second month in a row in September, as Europe’s top economy grapples with global supply shortages, official data showed on Tuesday.

Germany exported 112.3 billion euros ($130.2 billion) worth of goods in September, adjusted for the season, a 0.7 per cent drop from the previous month, according to federal statistics agency Destatis. Imports rose 0.1 per cent to 99.2 billion euros.

The August drop in exports was the first since April 2020, when the first wave of the coronavirus pandemic stifled the global economy.

The upheaval caused by the Covid-19 has given rise to global shortages in components, such as semiconductors, timber and plastics, limiting production in key sectors for the German economy such as the car industry.

A business survey found that shortages of materials eased in October, though the companies still expect the situation to remain difficult for the months to come.

The German government has downgraded its forecast for economic growth this year to 2.6 per cent from 3.5 per cent.