Strong Demand German Machine Exports Record High Growth: VDMA
Germany – From January to September 2021, the overall machine exports from Germany rose by 11 % year-on-year to 133.2 billion euros. In the third quarter, total machinery exports from Germany to the EU-27 was 5.8 % above their prior-year level. Machinery and equipment were exported to diverse sectors including machine tools and precision tools.
Exports of machinery from Germany recorded high growth in the third quarter, rising by 8.8 percent year-on-year to 44.6 billion euros, as reported by the Federal Statistical Office based on provisional figures. In the first quarter, exports were up 0.9 percent. In the second quarter they were 24.5 percent above the previous year's level. However, it should be noted that machinery exports fell by 21.1 percent in the second quarter of 2020 – the peak of the Corona pandemic.
Overall machinery exports in the first three quarters of this year increased by 10.8 percent year-on-year to 133.2 billion euros. In contrast, machinery exports declined by 10.1 percent in 2020. "Mechanical engineering is once again benefiting from its strong presence abroad. The pre-crisis level of machinery exports from 2019 is close at hand thanks to good demand from foreign customers. But the widespread material and logistics bottlenecks put a burden on export performance," says VDMA (The Mechanical Engineering Industry Association) chief economist Dr. Ralph Wiechers.
In the third quarter, total machinery exports from Germany to the EU-27 were 5.8 percent above their prior-year level. The export business with the three largest customers from the EU-27, France (minus 1.7 per cent), Italy (plus 17.3 per cent) and the Netherlands (plus 11.3 per cent), developed differently. Exports of machinery to the United Kingdom again grew strongly by 38.7 per cent in the third quarter. The high growth rate has ensured that the country has moved past the Netherlands into fifth place among the foreign sales markets for exporters from Germany. Last year, the UK was 8th place in the rankings.
Machinery exports to the two largest single markets, the USA and China, continued to show different dynamics in the third quarter: 18 percent more machinery and equipment was exported from Germany to the USA. Exports to China, on the other hand, only increased by 3 per cent compared to the previous year. From January to September, machinery exports to the USA and China were up 12.6 and 10.8 per cent respectively on the previous year. The USA was thus able to slightly increase its share of total exports to 11.3 percent. China has a share of 10.9 percent.
"Momentum in China is not expected to pick up in the short term, as important customer industries such as construction and automotive are not sending out any expansive impulses," explains the VDMA chief economist.