Germany records a trade deficit with China of 84 billion Euros as inflation reached 8.7%

The trade balance deficit between Germany and China widened by more than 84 billion Euros, equivalent to 90.4 billion US dollars, in favor of China during the past year 2022, according to a report by the German Economic Institute.

Germany’s trade deficit with China is an increase equivalent to twice its size compared to 2021, due to an increase in imports of Chinese goods, by more than 33% on an annual basis.

The institute revealed that Germany’s imports from China grew by 9% over the total rate of Berlin’s imports from all countries.

Meanwhile, the German Federal Statistical Office announced this week that inflation in Germany remained at a high level at the beginning of the new year, as consumer prices increased by 8.7% in January, compared to what they were in the same month last year, based on preliminary data.

This ratio contradicted the expectations of the German Minister of Economy Robert Habeck, who predicted at the end of last January that the high inflation rate would drop dramatically for a while in his country.

Habeck said at the end of last month that the annual average inflation for 2023 is expected to reach 6%, after reaching 7.9% last year.