German exports fell sharply in December on weaker demand from eurozone countries, official data showed Monday, capping a disappointing year in foreign trade for Europe's largest economy.
Exports totalled 125.3 billion euros ($135 billion) in December, a 4.6-percent plunge on the previous month, federal statistics agency Destatis said.
Analysts surveyed by FactSet had forecast a smaller drop of 2.4 %.
Imports declined even more sharply by 6.7% to total 103.1 billion euros, widening the trade surplus to 22.2 billion euros.
The export plunge was driven by a six-percent drop in shipments to fellow eurozone countries. The decline was partly offset by a 3.5-% rise in demand for "made in Germany" goods from outside the European Union.
For 2023 as a whole, exports were down 1.4% year-on-year, Destatis said, while imports slumped by nearly 10 %.
The German economy has long relied on global trade to power growth but supply chain frictions, higher energy costs and cooling demand from key markets including China have all weighed heavily on the export powerhouse in recent months.
Elevated inflation and higher interest rates have also taken their toll, hitting the crucial industrial sector particularly hard.
The headwinds caused the German economy to shrink by 0.3% in 2023.
The German central bank expects a modest improvement in 2024, predicting growth of 0.4 % as inflation eases and demand picks up again.