Industria meccanicaEsportazione > Exports of the machinery industry

Export markets of the German machinery industry until 2019 Q4

Machine exports rising in fourth quarter only to countries with small export shares

Symbol picture trade war

This report completes the analysis of the structure of machine exports from Germany “The shift back in the export markets has been accomplished since 2017”. Against this backdrop this analysis highlights the current quarterly development of the worldwide machine exports from Germany.

Update November 25th, 2019 - In the wake of the world economic crisis export markets of the German machinery industry turned particularly to China and also to the other developing countries while export shares to the former favored countries EU and the US clearly dropped.

Since 2014 export markets have been shifting back favoring those export countries that had prevailed before the world economic crisis: the EU and the USA. This shift back accomplished in 2017 and has been determining export structure since then.


This development had still deepened in first quarter 2019. The export share of machines from Germany to the EU reached 51%, before the crisis the share was 52%. And the machine exports to the BRIC countries dropped to 15%, the same level as ahead of the crisis.

Export shares of German machines to EU, BRIC, MIST countries and the US and Japan from 2008 to 2019.

The second quarter developed contrary to the first quarter. The export ratio to the EU and the USA fell, while the export ratios to the BRIC countries and countries with lower export ratios rose.


In the third quarter of 2019, machinery exports fell overall by 0.7% compared to the second quarter. This decline had an impact on the EU, the BRIC and the MIST countries - only to the USA machine exports significantly increased. They rose by 2.7% in the third quarter.


Finally, in the fourth quarter total machinery exports fell slightly by 0.5% compared to the previous quarter. Machinery exports to the USA, China and Russia also recorded declines. In contrast, machinery exports to countries with a low export ratio of less than 5% experienced an upswing of over 10% compared to the previous quarter.

Machine exports to the US, China and Russia slightly declining

Each of the three countries China, USA and Russia take 5% or more of the machine exports from Germany. So these countries are outside the EU the most important export markets.

 

Since 2015, the export quota for machines to the USA has again exceeded that to China. In the third quarter of 2019, machinery exports reached their highest level since 2008 at 11.3%. In the fourth quarter they continued to fall slightly to 11.0%.


Following the global economic crisis, machinery exports to Russia rose to over 5% in 2012, reaching the lowest level since 2008 at 2.6% in the first quarter. In the second quarter, the export ratio reached 3.2%, the highest value since 2015, which fell back to 2.9% in the fourth quarter.


The fourth quarter marked a slight decline in machinery exports for the USA, China and Russia.

Export shares of German machines to China, Russia, the US from 2008 to 2019.

Machine exports to countries with smaller export ratio rising clearly

Each of the MIST countries Mexico, Indonesia, South Korea and Turkey take less than 5% of the machine exports from Germany. That is also true for Brazil and India belonging to the BRIC countries. Finally a small portion of machine exports from Germany is taken by Japan.

Export shares of German machines to Turkey, Brazil, Japan, India from 2008 to 2019.

The exports to these seven countries with export shares of each below 5% had summed up to altogether 9.7% in 2018. This export share dropped to 9.4% in first quarter 2019, increased slightly to 9.5% in second quarter and dropped again to 9.3% in third quarter.


In the fourth quarter of 2019, the export ratio to these countries jumped to an annual high of 10.2%.

Machine exports from Germany are often lagging behind the export countries' industrial production

A separate report shows that machine exports from Germany are often lagging behind the industrial production of the related export countries.

Bookmark and Share