# German exporters prepare for a challenging 2023
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: German Exporters Face Challenges Amidst Rising COVID
Meta Description: German exporters foresee challenges next year, with issues expected in China and the U.S. market. Find out more about the outlook for 2023.
URL: https://financedigest.com/german-exporters-prepare-for-a-challenging-2023html

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BERLIN (Reuters) – German exporters have modest hopes for next year, anticipating problems at major customers in China because of climbing COVID infections and rising prices making U.S. buyers cautious, the Federation of German Wholesale and Foreign Trade (BGA) said.

The United States and [China are Germany’s](https://www.financedigest.com/first-foreign-covid-vaccines-head-to-china-from-germany.html "First foreign COVID vaccines head to China from Germany") most important trading partners.

There will be no slump in exports in 2023, but we cannot [expect a steep rise](https://www.financedigest.com/german-industrial-orders-rise-more-than-expected-in-february.html "German industrial orders rise more than expected in February") either,” BGA President Dirk Jandura told Reuters in an interview published on Thursday. It would already be a [success if we manage](https://www.financedigest.com/why-ai-can-be-the-key-to-success-for-fund-managers-in-the-post-covid-landscape.html "Why AI can be the key to success for fund managers in the post-COVID landscape") a ‘black zero’ in real terms.

After Beijing abandoned its zero-COVID policy early this month, the virus is spreading largely unchecked [across the country](https://www.financedigest.com/sdl-helps-lifeplus-engage-with-customers-across-50-countries-and-gain-control-of-translation-costs-and-processes.html "SDL Helps Lifeplus Engage with Customers across 50 Countries and Gain Control of Translation Costs and Processes") of 1.4 billion. While the Chinese economy is expected to [see a sharp rebound later next year](https://www.financedigest.com/10-year-david-goliath-crusade-finally-sees-justice-for-off-plan-spanish-property-buyers.html "10 year ‘David & Goliath’ crusade finally sees justice for off-plan Spanish property buyers"), it is in for a rough ride in the coming weeks and months as workers increasingly fall ill.

“We are also worried about the U.S.” Jandura said. We have a stronger [euro again because of the ECB interest rate](https://www.financedigest.com/stocks-euro-gain-amid-divergent-fed-ecb-rate-hike-outlooks.html "Stocks, euro gain amid divergent Fed, ECB rate hike outlooks") increases. That’s not going to boost exports.”

He added that higher [interest rates](https://www.financedigest.com/ecbs-centeno-says-interest-rate-close-to-peaking-if-no-new-shocks.html "ECB’s Centeno says interest rate close to peaking if no new shocks") were already having an impact in the United States where they have risen further, especially on the construction industry.

To tame soaring inflation, the [European Central Bank](https://www.financedigest.com/token-inc-launches-london-office-to-answer-demand-from-european-banks.html "Token, Inc. Launches London Office to Answer Demand from European Banks") and the U.S. Federal Reserve have [raised interest rates](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") at the fastest pace in decades and both are expected to do more next year.

German exporters had not been able to fully process all [orders in recent months](https://www.financedigest.com/italys-leonardo-raises-fy-orders-guidance-after-strong-nine-months.html "Italy’s Leonardo raises FY orders guidance after strong nine months") due to supply shortages, Jandura said. That left them with comfortably filled order books and the anticipated [easing of supply](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease") bottlenecks should create a catch-up effect.

[German exports probably have risen at a double-digit percentage rate](https://www.financedigest.com/german-inflation-rate-to-ease-over-course-of-2023-econ-minister.html "German inflation rate to ease over course of 2023 – econ minister") in 2022, mainly thanks to higher prices, with goods volumes up by “low single digits,” Jandura said.

Last year, exports rose 14% and imports grew 17%, reducing Germany’s trade surplus for the fifth [year in a row](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row").

(Reporting by Rene Wagner, writing by Kirsti Knolle; Editing by Tomasz Janowski)


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