Europe’s economic powerhouse, Germany, kicked off the second half of this year on a weak note, as the country’s exports beyond the European Union (EU) fell by 7.6% on the month in July, the Federal Statistics Office said on Monday.
Key takeaways (via Reuters)
“The United States remained the most important trading partner for German exporters in July, with exports of goods to the US market rising 14.9% on the year. “
“Exports to China rose 6.1% on the year. Exports to Russia fell 56.0% on the year.”
“The German economy became more dependent on China in the first half of 2022.”
Over the weekend, Bundesbank President Joachim Nagel said that the German economy is “likely” to suffer a recession over the winter if the energy crisis (specifically Russia cutting gas supply) continues to deepen.
Market reaction
EUR/USD was last seen trading at 1.0016, down 0.16% on the day, undermined by the ongoing gas crisis and the broad-based US dollar strength.
