German Machinery And Equipment Exports Increased By 4.4%
Although the economic outlook is somewhat confused, the export volume of German machinery and equipment companies is still growing.
According to VDMA statistics, in the first four months of 2018, the German mechanical engineering company’s export volume increased by 4.4% year-on-year to reach 56.1 billion euros.
From January to April 2018, the import value of German machinery and equipment was 23.7 billion euros, a year-on-year increase of only 1.5%, mainly due to the exchange rate effect.
Germany’s exports to the US and China markets have the strongest growth. U.S. cargo transportation benefited from a good capital goods market, resulting in an increase of 7.5%. Since the United States passed the tax reform in December 2017, the above statistics do not include the positive impact of tax cuts.
Germany’s exports of machinery and equipment to China increased by 16.4% year-on-year, which was slower than the 22.6% increase in the same period last year. This is due to the fact that the Chinese government pays more attention to the structural adjustment of production capacity, which has reduced the demand for imported equipment and the procurement budget. “We are still optimistic about the Chinese market. The demand for high-end machinery in Germany is increasing rapidly with the “Made in China 2025” strategy. We believe that Germany’s machinery and equipment exports to China will continue to grow,” Wortmann explained.
The delivery of German machinery and equipment to EU member states increased by only 1.7% year-on-year. However, VDMA believes this data is temporary. There will be some adjustments in the coming months. After adjustment, the EU member states’ demand is expected to achieve strong growth. However, the VDMA pointed out that the current UK exports fell by 2.2%, and Turkey’s exports dropped by 3.5%, in line with expectations.
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