Decreased industrial production of Germany In February, according to figures released today (7.4.2025), the federal statistical service, while the same period increased by export.
More specifically, compared to January, the industry, construction industry and energy providers decreased by 1.3%, while exports increased by 1.8%in February, mainly due to increased demand by the US in the face of new duties. As a result, the US replaced China for this time as the most important country for German foreign trade.
To the US market, Germany’s exports increased by 8.5% to € 14.2 billion. “Exports seem to have benefited from orders earlier to prevent the highest US duties,” said Haufhäuser Lampe Privatbank leader Alexander Kruger, who, however, stressed that there is a need for German businesses.
At the same time, the production of German industry declined 4%compared to February 2024, indicating, according to the Ministry of Economy, “a constant distorted movement in industrial production”. Hamburg Commercial Bank’s lead economist Shire de la Rubia also commented that “with US duties there is now a slight prospect of rapid recovery” for the German economy.
The German Foreign Trade Association (BGA) at the same time expressed concern about the risk of escalating the trade conflict following China’s reaction to US products. “This is just the beginning of the devastating tariff avalanche that has deliberately launched by President Trump,” BGA President Dirk Yadura said. “It will cause significant financial damage to all sides worldwide,” he added.