Strong China demand fuels German export, production rebound
CGTN
A German flag flutters next to the dome of the Reichstag building, seat of the German lower house of parliament Bundestag, in Berlin, October 2, 2013. /Reuters

A German flag flutters next to the dome of the Reichstag building, seat of the German lower house of parliament Bundestag, in Berlin, October 2, 2013. /Reuters

Strong overall export demand, especially from China, helped Germany's manufacturers rebound from the shock of the coronavirus lockdown for the second month running in June, though output was still well below the level of a year ago.

Industrial output from Europe's largest economy grew 8.9 percent on the month, fueled in part by a 14.9 percent increase in exports – the largest month-on-month increase in almost 30 years.

An Ifo research institute survey underlined the sense of optimism: manufacturers expect expansion over the coming three months.

But the overall export recovery masked considerable differences between countries in different phases of the coronavirus pandemic. China, the first country to be struck by the pandemic, bought 15.4 percent more from Europe's top exporter than in June 2019.

But demand from the United States, which is still in the grip of a major outbreak, shrank 20.7 percent.

Trade relations with Britain, worse hit by the pandemic than most European countries and preparing for its commercial ties to be upended by departure from the European Union's internal market, were also hit: it bought 15.7 percent less from Germany than last June and sold 21 percent less to Germany.

Source(s): Reuters