In a recent survey conducted by the Ifo economic institute, sentiment among German exporters saw an improvement for the month of February. Although only a few sectors anticipated an increase in exports, the overall outlook showed signs of positivity.
The export expectations indicator, as reported by the institute, rose to minus 7.0 points in February, marking a slight improvement from the previous month's figure of minus 8.5 points. Klaus Wohlrabe, head of surveys at Ifo, commented that while the German export industry is seeing some improvement, it still has ample room for growth.
Among the sectors, the food industry and manufacturers of glass and ceramics maintained their forecasts for export growth. However, mechanical engineering expectations dipped to their lowest level since June 2020. Weakness in exports was also observed in the automotive and metal sectors, according to the study.
The challenges faced by German exports in 2023, including high inflation, increased interest rates, and international crises, resulted in a 1.4% decline in overall exports. Despite these hurdles, the recent uptick in sentiment offers a glimmer of hope for the future of German exports.
