German trade group sounds alarm as exporters eye recession By Reuters

BERLIN (Reuters) – German exporters are staring down a recession in foreign trade as sentiment in the sector turns alarmingly dark, trade lobby group BGA said on Wednesday.

For 2024, the German Federation of Wholesale, Foreign Trade and Services (BGA) expects exports to continue to decline, contracting by 0.3%, while imports will fall by 2.0%.

BGA president Dirk Jandura called the predictions a wake-up call for the German government, saying around 70 percent of companies surveyed said Berlin’s measures had gone in the wrong direction or that its response did not go far enough.

“German foreign trade is facing a recession,” he said.

Concerns abound among the BGA’s several hundred members because of weak growth in the EU’s domestic market, persistently weak numbers in China and the results of the U.S. election, Jandura said.

Sentiment has fallen significantly since the first half of the year and exporters are skeptical that there will be a rebound in the second half, with the assessment of future business expectations at an all-time low, he added.

“The levers to save our export nation model are clear: we need less red tape, fewer burdens and, above all, a clear commitment and courage to engage in freer trade,” Jandura said .