Germany's exports fall 0.8% for first time in five months; Japan raises annual GDP growth to 1.4%
Germany's July exports dropped 0.8%, marking the first decline in five months due to weak demand from China and the eurozone. Meanwhile, Japan reported a 0.4% quarterly growth rate, pushing its annualized real GDP up to 1.4%.
German exports declined 0.8% in July, reaching €138.2 billion. This marks the first fall for the trade engine in five months, according to provisional data from statistics agency Destatis. The drop represented a steeper decline than analysts surveyed by FactSet had anticipated, expecting only a 0.5% reduction. Shipments to China fell 9.5%, while exports to other eurozone countries dropped 2.8%. Demand from the United States supported the total but was not enough to offset losses in Europe and Asia. This follows disappointing industrial production figures for July and raises concerns that global instability is hampering economic recovery.
Japan's economy grew 0.4% in the second quarter of 2026, according to government data released on Tuesday. The preliminary estimate had been 0.5%, making this revised growth figure stronger than expected. On an annualized basis, real GDP advanced 1.4%. Capital investment led the correction, with spending declining only 0.9% compared to a preliminary projection of a 1.2% drop. Private consumption remained stable. The result is seen as encouraging for the Bank of Japan, which markets nearly fully price in increasing its interest rate this September to 0.50 percent.
Investors are watching closely as the central bank weighs medium-term growth against inflation and regional tensions.
