The Market Environment for German Exports in the Shadow of the Coronavirus Pandemic
Hubertus Bardt / Sonja Beer IW-Trends No. 3 10. July 2020 The Market Environment for German Exports in the Shadow of the Coronavirus Pandemic
The corona pandemic has led to a severe economic downturn worldwide, with the global economy about to experience its most dramatic contraction of the last seven decades.
The corona pandemic has led to a severe economic downturn worldwide, with the global economy about to experience its most dramatic contraction of the last seven decades.
For an export-oriented economy like Germany's, this means a sharp drop in international demand, and the present article attempts to assess the potential ramifications for selected branches of German industry. Recently, in fact, export risks have actually declined. While at the beginning of April almost half the usual export volume was still destined for high-risk countries where the Coronavirus was widespread and increasingly virulent, by the first half of June this proportion had fallen to a mere 13 per cent. Nevertheless, the severe economic disruption in many countries is leading to a decline in trade volumes. More than half of German manufacturing’s export markets will shrink by at least 6 per cent this year, clearly demonstrating that the macroeconomic market environment for German exports has deteriorated enormously as a result of the Coronavirus pandemic.
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