German companies start 2026 with improved export expectations

By Bahattin Gonultas and Emir Yildirim

BERLIN/ISTANBUL (AA) — German companies started the new year with signs of recovery in export expectations, as the Munich-based ifo Institute’s Export Expectations index rose from minus 3 to minus 1.2 in January, ending its downward trend.

The ifo Institute said on Tuesday that export expectations varied across sectors. The auto and electronic equipment manufacturers showed a more optimistic view towards global activities in January, expecting increased exports, while beverage companies expect a stable and improving export environment.

Meanwhile, clothing and food producers, as well as the printing business in Germany, expect exports to continue declining.

“Even though companies are less skeptical with regard to their international business, uncertainty remains high,” said Klaus Wohlrabe, head of surveys at the ifo Institute, noting that there is no definitive sign of an upward trend for the first quarter of 2026.

At the same time, Germany’s exports fell 0.3% year-on-year in 2025, according to the country’s statistical bureau Destatis.

Ruth Brand, president of Destatis, said in a statement that Germany’s exports are facing strong headwinds due to rising US tariffs, the euro gaining value, and rising competition from China.

Berlin expects exports to grow 0.8% this year and 1.6% in 2027.