The Fall of the Gods: Germany goes into a trade deficit for the first time since 1991. Only now the prospects are much worse

4 July 20222 years ago babelfish

An economic model taken as an example by the whole EU and instilled with "Reforms" and "Spread" in other countries, is collapsing miserably like a house of cards. Germany goes into a trade deficit for the first time since 1991 to May, closing an era of mercantilism based on low investment and exploitation of low-cost human and energy resources.

Here is the graph of the federal statistical agency Destatis

After the calendar and seasonality correction, Germany exported goods worth a total of € 125.8 billion and imported goods worth € 126.7 billion in May 2022. The foreign trade balance recorded a deficit of 1.0 billion euros in May 2022. In April 2022 there was a calendar and seasonally adjusted surplus of +3.1 billion euros and +13.4 billion euros in May 2021. The value of exported goods to the countries of the euro area was 46.8 billion euro (-2.8%) and that of goods imported from these countries was 42.5 billion euro (+ 1.6%). Goods for a value of 20.6 billion euros (-2.9%). So the German model no longer works even in the EU and impoverishing other countries makes them bad customers in time of need.

With the extra European it is not much better. Exports amounted to € 58.3 billion in May 2022 and imports from these countries totaled € 65.0 billion on a calendar and seasonally adjusted basis. Compared to April 2022, exports to third countries increased by 2.3% and imports from these countries by 2.9%. USA and China are the major partners.

The German model was based solely on the import of low-cost energy. That is over, mercantilism is over, and we move, even in Germany, to parts of the Mediterranean. When we had a deficit in the balance of trade for too long, the Germans of Merkel, with the complicity of Sarkozy and the ECB, imposed on us Mario Monti. and it was a disaster. Now if they go into double deficit (trade and budget) who will solve their problems? Super Mario?

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The article The Fall of the Gods: Germany goes into a trade deficit for the first time since 1991. Only now the prospects are much worse comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-caduta-degli-dei-la-germania-va-in-deficit-commerciale-per-la-prima-volta-dal-1991-solo-che-ora-le-prospettive-sono-molto-peggiori/ on Mon, 04 Jul 2022 12:43:34 +0000.