Germany has its first export deficit in more than three decades

According to new numbers that were announced on Monday, Germany had its first monthly trade deficit since 1991 in the month of May because of increased prices for its imports. According to the Federal Statistical Office, exports hit 125.8 billion euros ($131.5 billion) in the previous month, while imports were 126.7 billion euros.

A psychological blow was dealt to Europe’s largest economy, which takes great pleasure in its robust export sectors, as a consequence of the seasonally adjusted numbers, which resulted in a foreign trade imbalance of nearly one billion euros.

The spike in imports was explained by analysts as being due to inflation.

In addition, Germany experienced an increase in exports to Russia of about 30 percent in May compared to the previous month. This comes after exports to Russia dropped by 60 percent in April as a direct result of the conflict in Ukraine and the corresponding sanctions. The amount of goods sent to Russia in April stayed at a level that was much lower than what it had been in May 2021.