German exports fell more sharply than anticipated in January, adding to concerns that Europe's largest economy is struggling to find its footing after three difficult years. Official data published Tuesday by statistics agency Destatis showed exports slipped 2.3 percent from the previous month to 130.5 billion euros, worse than the two percent decline analysts surveyed by financial data firm FactSet had expected.
The drop was driven primarily by falling shipments to China and Europe. Exports to China, Germany's top trading partner in 2025, plunged over 13 percent in January alone. Once a reliable engine of growth for German exporters, China has become an increasingly difficult market due to an economic slowdown and the rapid rise of homegrown competitors in key sectors. Exports to fellow European Union countries also fell nearly five percent, compounding the weakness on Germany's most important trading front.
Not all the news was negative. Exports to the United States, Germany's top export destination, rebounded nearly 12 percent in January, after having suffered heavily throughout 2025 under the weight of President Donald Trump's tariff offensive. The recovery in US-bound shipments provided some relief but was not enough to offset the broader decline.
On the import side, Germany also saw a sharp pullback. Imports dropped nearly six percent in January, driven by a fall in purchases from both the United States and China. German imports were valued at 109.2 billion euros for the month. As a result of the simultaneous drop in both exports and imports, Germany's trade surplus widened to 21.2 billion euros.
After three bleak years, expectations had been building that Germany could stage a meaningful recovery in 2025, supported by a wave of public spending unleashed by Chancellor Friedrich Merz. While some positive signals have emerged in recent months, the January export data serves as a reminder that any turnaround is likely to be slow and uneven rather than swift and straightforward.
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