📝 Outlook For German Exports Doesn't Look Encouraging: ING

Looking ahead, despite richly filled order books, the short-term outlook for German exports doesn’t look encouraging. New lockdowns in China and a continuation of, instead of easing, last year’s supply chain disruptions will leave significant marks on German industry. According to a recent Ifo survey, almost half of all German companies are dependent on imports from China. Also, the war in Ukraine is very likely to disrupt other supply chains for good. More generally, with a high risk that the war accelerates the trend of deglobalization and high energy and commodity prices for longer, the German export sector is facing more headwinds ahead. - ING Head of Global Macro