Germany records 1st export deficit in over 30 yrs due to high import costs

Germany recorded its first monthly trade deficit since 1991 in May as a result of higher import prices, figures released Monday show.

The Federal Statistical Office said exports reached 125.8 billion euros ($131.5 billion) last month, while imports came in at 126.7 billion euros.

The seasonally adjusted figures resulted in a foreign trade deficit of almost 1 billion euros a psychological blow to Europe's biggest economy, which prides itself on its strong export industries.

Analysts attributed the rise in imports to inflation.

Germany also saw exports to Russia recover by almost 30% in May compared to the previous month, following a 60% drop in April due to the war in Ukraine and related sanctions. The volume of exports to Russia last month remained less than half of what they were in May 2021.