Import prices in August 2024
Import prices increased by 0.2% compared to August 2023. The rate of change in July 2024 was +0.9%, in June 2024 +0.7%. According to the Federal Statistical Office (Destatis), import prices decreased by 0.4% compared to July 2024.
Export prices in August 2024: Export prices increased by 0.8% compared to the same month of the previous year. They remained unchanged compared to July 2024.
Import prices and the impact of consumer goods:
Import prices were affected by higher prices of consumer goods (+2.4%) compared to the previous year. Imports of non-durable goods saw a price increase (+2.7%). Prices of durable consumer goods also increased by 1.2%. Cocoa butter and fats and oils prices were significantly higher (+122.7%) compared to August 2023, despite being down 4.0% from July 2024. Overall, imported food prices were up 5.1% from a year earlier (+0.5% from July).
Agricultural product prices rose :
Agricultural product prices rose 5.5% from a year earlier. Raw cocoa was more expensive by +130.3%, but down 5.1% from the previous month. Green coffee prices increased by 33.4% from August 2023, also up from July (+5.2%). In contrast, prices for onions (-33.7%), peppers (-22.4%) and live pigs (-16.2%) fell.
Intermediate goods prices stable, capital goods prices up :
Intermediate goods prices were unchanged year-on-year, but down 0.6% from the previous month. Capital goods prices rose by 0.1% year-on-year. The cost of some commodities decreased, such as starch (-24.7%) and batteries (-5.3%). In contrast, the cost of vehicles increased by 2.6%, while the prices of computers and peripheral equipment decreased by 4.6%.
Energy import prices decreased
Energy import prices decreased by 5.4% compared to August 2023. Mineral oil prices were significantly affected, decreasing by 12.8% compared to the same month of the previous year..
Capital and consumer goods export prices rise
Import prices excluding energy
Excluding energy prices, import prices rose by 0.9% compared to August 2023, while they decreased by 0.2% from July 2024. Excluding crude oil and mineral oils, the import price index was 0.7% higher than the previous year.
Capital and consumer goods export prices rise
Intermediate goods prices increased by 1.6% in August 2023, while they decreased by 0.1% from July 2024. Motor vehicles prices rose by 2.0% and machinery prices by 1.9%.
Consumer goods prices rose by 2.3% compared to the same month of the previous year. Nondurable consumer goods prices rose by 2.7%, while durable goods prices increased by 0.9%.
Energy export prices fall
Although energy export prices fell by 15.2% compared to the previous year, this was not enough to offset the rise in capital and consumer goods prices. Prices for natural gas, mineral oil products and electricity fell significantly, while exports of natural gas and electricity increased compared to July 2024.
Change in export prices of agricultural products
Export prices for agricultural products decreased by 1.2% compared to August 2023 and by 2.4% compared to July 2024. In contrast, prices for exported intermediate goods increased by 0.3%, but decreased by 0.2% compared to the previous month.
Foreign trade and the German economy: Exports exceed 40% of GDP
Germany is a leader in global trade, with exports playing a vital role in its economy. The “Made in Germany” label stands for quality and trust, reflecting Germany’s deep attachment to exports. Despite falling behind China and the United States in the global rankings, Germany remains Europe’s largest exporter.
The German economy is highly dependent on foreign trade, with exports contributing more than 40% of GDP. Every fourth job in Germany is created by exports. Historically, Germany has exported more than it imports, running large trade surpluses since 1952.
Major Exports, Imports and Future Challenges
Despite crises such as the global financial crisis and the Corona pandemic, Germany has achieved record trade surpluses. However, current challenges such as rising energy prices and the war in Ukraine have led to a decline in the trade surplus in recent years, highlighting the importance of foreign trade for the German economy. According to data from the Federal Statistical Office (Destatis), German exports in 2022 amounted to 1,576 billion euros, an increase of 14% compared to 2021. Imports reached 1,494 billion euros, resulting in a trade surplus of 82 billion euros.
Major trading partners
China topped the list of Germany’s trading partners for the seventh year in a row, with trade between the two countries amounting to 298 billion euros. It was followed by the United States (247.8 billion euros) and the Netherlands (233.6 billion euros). The United States was the largest market for German goods, with 156.1 billion euros exported. Germany imported 191.1 billion euros from China, reflecting its heavy dependence on imports from this country.
Main exports and imports
Motor vehicles and spare parts were the main exports, with a value of EUR 244.4 billion. Machinery and equipment followed with a value of EUR 208.4 billion. As for imports, data processing equipment and electrical products were the most important imported goods, with a value of EUR 147.8 billion.
Future challenges
Germany faces major challenges in foreign trade, especially with the United States and China. The US Inflation Reduction Act passed in August 2022 poses a threat to German companies in its largest market. In contrast, Germany relies on imports from China for raw materials, and any reduction in these imports could negatively impact the German economy. While Germany recorded growth in its foreign trade, significant challenges in global business environment remain an obstacle to sustaining this success.
