BERLIN, Feb. 18 (Xinhua) -- Exports of the German engineering sector grew by 5.3 percent to a new record level of 177.8 billion euros (201.4 billion U.S. dollars) worth of goods in 2018, the German Mechanical Engineering Industry Association (VDMA) announced on Monday.
"We can look back on a very pleasing 2018 trading year," commented Olaf Wortmann, economic expert at the German engineering association VDMA. "The growth in exports shows that our medium-sized industry with its high-tech products is in high demand even in difficult times, because customers from all over the world need these machines and plants."
Exports to the United States, the largest individual export market for German engineering companies, grew by 7.1 percent to 19.25 billion euros in 2018, closely followed by exports to China, which increased by 9.6 percent to 19.06 billion euros. The United States and China thus accounted for 10.8 percent and 10.7 percent respectively of exports of the German engineering sector.
"In terms of deliveries to the USA, machine builders benefited not only from the good economic situation in the United States but also from the corporate tax reform there and the significantly improved depreciation and amortization conditions," said VDMA expert Wortmann.
For 2019 the VDMA is expecting a slight growth in exports to China from the German engineering sector despite the "economic slowdown in China". Although this growth would "unlikely" be as strong as in 2018, Wortmann told Xinhua on Monday.
Trade with other member states of the European Union accounted with an increase of 6.6 percent to 83.91 billion euros for nearly half of the exports of German engineering companies and thus Europe remained the largest sales region. The most important European export country was France with exports worth 11.55 billion euros in 2018.
In Britain, exports of German engineering companies grew by 5.1 percent to 7.68 billion euros in 2018. "Here, pull-forward effects due to the Brexit may have played a major role. Companies in Great Britain have increased their inventories or brought forward orders," added Wortmann.
