Advertise Here
Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Image
  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 »

Interview with Bright Rock CEO, Schalk Malan about their ground-breaking temporary disability cover

In October 2019 Needs-matched life insurance provider, BrightRock, announced enhancements to their temporary expenses cover. Read More More recently Insurancegateway® Interviewed Schalk Malan to not only ...
Read More »

  

The Importance of an effective online campaign

As we enter the age of the fourth industrial revolution, a technological transformation driven by the internet, it seems almost unthinkable that the web would not be the preferred platform chosen by businesses ...
Read More »

  

Allianz and Embry-Riddle University aviation study: Safer skies but claims and risks grow

Fewer fatal accidents, but growing number of costly claims for the aviation industry and insurers from collisions, groundings and aircraft repairs Analysis of 50,000 aviation insurance claims shows collision/crash ...
Read More »

  

Allianz and Embry-Riddle Aeronautical University report: Flying has never been safer

Despite record numbers of passengers, 2017 and 2018 are among the three safest years of the aviation industry for fatal plane crashes Safety driven by design, technology and training improvements Strap yourself ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Advertise Here
Image
Image
Image
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

MSCI:

Morgan Stanley All Country Index (Equities).
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 - 2019. All Rights Reserved.