Germany's Export Outlook Remains in Red
Export sector sentiment climbed to minus 3.1 points in December, marking a modest 0.7-point month-over-month gain but signaling persistent weakness in Europe's largest economy.
Automotive and mechanical engineering industries maintained their pessimistic stance throughout December, with both sectors anticipating continued export declines in the months ahead.
"The outlook for the first quarter of 2026 is rather subdued," said Klaus Wohlrabe, head of surveys at ifo. "Any real revival in exports just isn't happening."
The food industry projects falling export volumes, though at a more moderate pace compared to November's steep drop. Meanwhile, electronic and optical equipment manufacturers remain "largely optimistic about the coming months," buoyed by anticipated global demand expansion.
Electrical equipment exporters foresee minimal growth ahead after several months of "temporary euphoria," the ifo Institute noted in its analysis.
The figures underscore mounting challenges facing German manufacturers as geopolitical tensions and weakening international demand threaten the export-dependent nation's economic recovery prospects.
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