Germany: the trade balance is in deficit

Having a trade balance deficit, France is customary, but in Germany, it is far from usual. According to John Paul Châtelthe trade balance has “from thirty years accumulated surpluses, thanks in particular to their quality cars, the famous Deutsche Qualitat.” In mhave 2022, Germany nevertheless records a balance commercial negative, with a deficit of one billion euros, while in May 2021 it was a beneficiary of 13 billion. It is therefore a setback for the German economy.

This trade balance in deficit has several causes. “First, the price of imports which is increasing. Germany, which has given up nuclear power, is very dependent on Russian gas. It has seen its bill explode faster than its European neighbors”explains Jean-Paul Châtel. Imports are not the only reasons why the trade balance is in deficit. Exports, especially of cars, are also falling. France has a trade balance deficit of 12 billion.