Image
Icon

Directory

IconAppraisers and Valuers
IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDefensive Driver Training
IconEmergency Medical Rescue
IconForensic Investigation Services
IconInsurance Brokers - Alphabetical Listing
IconInsurance Brokers by Type of Product or Service Needed
IconInsurance Companies
IconInsurance Consultants
IconLightning Damage & Surge Protection Specialists
IconOmbud
IconOnline Quotes and Cover
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconTelephone Quotes
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
Advertise Here
  Subscribe To »

German Exports: Record-high levels in 2016, but weak growth

Published

2017

Mon

16

Jan

 
By Coface, the international trade credit insurance company
 
Growth in Germany exports: percentage change year-on-year
In 2016, Germany was one of South Africa's five biggest export destinations, with an 8.2% share of South Africa's total exports.
 
Germany’s statistics office reported a new all-time high in total monthly exports in November totaling 108.5 billion euros, 5.6 percent more compared to November 2015. Export volumes have increased about 50 percent since the low in 2009.  Export growth has been impacted by the challenging global environment when up to November 2016, exports only grew 0.8 percent.
 
For the full year in 2016, export growth is expected to be between 1 and 1.5 percent at best. Due to the high level of risk in the global economy and strong import growth, net exports are not expected to support Germany’s growth in 2017.
 
In November, the strongest push in export activity was from countries outside the European Union showing a strong increase of 7.6 percent year-on-year. Although detailed data is not yet available, the euro’s depreciation against the US dollar after the US elections probably increased exports to the US, Germany’s most important export destination. Exports to the euro area grew 5.3 percent.
 
Shipments to EU countries outside the Eurozone grew by 2.8 percent. Exports towards the end of 2016 will probably be lower to the United Kingdom, Germany’s third most important export destination. In October, exports to the UK had already fallen 15.5 percent year-on-year.
 
Automotive exports decreased by 0.1 percent year-to-date in November, machinery exports were down 1.4 percent and chemicals 2.3 percent. Exports of Pharmaceuticals could see an increase over the course of 2016 of 1.2 percent and Data Processing/ Electrical and Optical Parts an increase of 1.4 percent. Exports of Electrical Equipment have increased by 3.9 percent to date in 2016, with final figures for the last quarter pending.
 
Risks
German companies are expecting increased export activity over the next few months. But export growth rates are expected to be contained and significantly lower than globalisation’s “golden years” between 2003 and 2007. Coface’s forecast for 2017 is that Germany’s export volume will reach a new record-high but export growth is expected to improve by only about 3 percent.
 
Volatility in the currency markets increased over the course of the last few months of 2016, strongly spurred by two key political events: the Brexit referendum and the presidential elections in the US. Due to the still increased level in political insecurity, the volatility in foreign exchange markets is expected to remain high.
 
Until now, German companies are taking advantage from the euro’s “Trump”-depreciation. On the other hand, the weaker pound is weighing on German exports to the United Kingdom. Since the Brexit plan and Trump’s stance in economic policy are still unclear, Germany’s exports could be affected in both directions due to shifts in exchange rates.
 
Another issue that could hamper Germany’s export perspectives is rising protectionism. Especially large companies could be forced to re-think strategic location decisions which could increase production costs, worsen competitiveness and lower profit margins.
 
This could especially affect the vehicle industry, which has or is building large production facilities in Mexico. Furthermore, increased tensions in trade policy between the US and China could lead to negative feedback loops in world trade and for German exporters.
 
To learn more about Coface visit us at www.coface.com.
 
Source: CharlesSmithAssoc/Sha-Izwe Communications
 
« Back to previous page Print this page » |
 

Breaking News »

When does a claim under a liability policy prescribe?

A claim for indemnification under a liability insurance contract only arises when liability to a third party for a certain amount has been established. For purposes of prescription, the debt becomes due when the ...
Read More »

  

SAIA Encourages Property and Household Contents Owners to Take Precautions During Load Shedding

The South African Insurance Association (SAIA) urges all property and household contents owners to exercise all precautions in an effort to mitigate the risks associated with load shedding and power cuts. The recent ...
Read More »

  

Guard against under-insurance

If you are under-insured, you may only be paid out partially for a loss   Having a solid understanding of the implications of underinsurance is crucial at a time when many South Africans are financially ...
Read More »

  

Prep like a pro - top risk and insurance tips for the holidays

As the excitement of heading off for some much needed R&R sets in, take some time out from the shopping, travel arrangements and last minute work wrap-ups to secure your home, assets and loved ones before you ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Advertise Here
Image
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Class Rate:

The rate applied to similar risks to arrive at a premium.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.