Germany's trade surplus in the first half (H1) of 2022 shrank by almost two-thirds year-on-year to 34.3 billion euros (35.3 billion U.S. dollars), the Federal Statistical Office (Destatis) said on Friday.

 

Although imports were up 26.5 percent at 729.6 billion euros, exports from Europe's largest economy only grew by 13.4 percent to 763.9 billion euros, according to Destatis.

 

Germany's foreign trade volume had already surpassed pre-pandemic levels last year, registering new record levels for both imports and exports. The country's trade surplus, however, has now fallen for five years in a row.

 

Meanwhile, in May this year, Germany recorded the first negative foreign trade balance since 2008, Destatis said. Exports of 125.8 billion euros were more than offset by imports worth 126.7 billion euros, resulting in a minus of almost one billion euros.

 

Chemical products were Germany's most important import goods in H1, with volumes rising by almost two-thirds to 76.1 billion euros. "The high import values in the chemical sector are due to imports of lactams from China. Lactams can be used for the production of both plastics and medicines," Destatis said.

 

Motor vehicles and components remained the country's top-selling products, with exports up 5.9 percent to 116.3 billion euros. Machinery products came second, with exports growing slightly to a value of 99.2 billion euros in the first half of the year.

 

International sales by German carmakers, however, declined by three percent in the first seven months of the year, according to the industry association VDA. Exports still remained 31 percent below pre-pandemic 2019 levels.

 

"The times for the economy and thus also for the German automotive industry remain challenging," VDA President Hildegard Mueller said in June. "It is all the more important to learn from the crises and draw the right lessons. It is now about the future of Germany as an industrial location." (1 euro = 1.03 U.S. dollars)