(London, December 02, 2023) — In the four quarters leading up to the end of Q2 2023, the total trade in goods and services between the United Kingdom and Germany reached a staggering £146.9 billion. This represents a notable increase of 15.9%, equivalent to £20.2 billion, in current prices compared to the preceding four quarters concluding in Q2 2022.
Exports to Germany Show Impressive Growth
During the same period, UK exports to Germany witnessed a robust surge, totaling £61.1 billion. This reflects a substantial increase of 15.8%, amounting to £8.3 billion in current prices, in comparison to the four quarters ending in Q2 2022. Of these exports, £35.0 billion (57.3%) constituted goods, while £26.1 billion (42.7%) comprised services.
Goods and Services Breakdown
Breaking down the export composition, UK exports of goods to Germany rose by 11.3% or £3.5 billion in current prices, contrasting the four quarters ending in Q2 2022. Simultaneously, UK exports of services to Germany experienced a remarkable uptick of 22.6%, equivalent to £4.8 billion, during the same period.
Imports from Germany on the Rise
On the import front, the UK imported a total of £85.8 billion worth of goods and services from Germany in the four quarters ending in Q2 2023. This marks an increase of 16.0%, or £11.8 billion in current prices, compared to the previous four quarters.
Goods Dominance in Imports
Of the total imports, £72.3 billion (84.2%) constituted goods, while £13.6 billion (15.8%) represented services. Importantly, UK imports of goods from Germany witnessed a surge of 16.3%, equivalent to £10.2 billion, during the same period. Concurrently, imports of services from Germany grew by 13.9%, amounting to £1.7 billion in current prices.
Trade Deficit and Surplus Dynamics
Despite the remarkable trade activity, the UK reported an overall trade deficit of £24.7 billion with Germany in the four quarters ending in Q2 2023. This represents an increase from the £21.2 billion trade deficit reported in the corresponding period in 2022. The trade in goods deficit specifically amounted to £37.2 billion, showing an increase from £30.6 billion in the four quarters ending in Q2 2022.
Conversely, the UK maintained a trade in services surplus of £12.6 billion with Germany during the four quarters ending in Q2 2023, showcasing an improvement from the £9.4 billion surplus reported in the same period in 2022. These dynamics underscore the intricate nature of the UK-Germany trade relationship, encompassing both challenges and opportunities for economic stakeholders in both nations. (GT)
