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German exports post historic plunge

German exports marked their biggest drop on record in April, officials said on Tuesday. But analysts expect the historic slump in Europe's biggest economy to ease in coming months.

German exports post historic plunge
Photo: DPA

German exports plunged by 28.7 percent in April from the equivalent figure last year, data from the national statistics office showed as German struggles with its worst recession since World War II.

It was the biggest drop since German records began in 1950.

“German companies still felt the pain in April,” UniCredit analyst Andreas Rees said. “But the signs are increasing that they will manage a comeback.”

The value of German exports amounted to €63.8 billion ($88.5 billion), the Destatis service said.

Imports decreased meanwhile by 22.9 percent to 54.4 billion euros, leaving Germany, a leading world exporter, with a trade surplus of 9.4 billion euros, it added, slightly higher than analysts forecasts.

Destatis also said that according to German central bank figures, the current account showed a surplus of €5.8 billion in April, down sharply from €15.4 billion a year earlier.

The current account of the balance of payments is the broadest measure of trade with other countries.

Rees noted however that there were two fewer working days in April 2009 compared with a year earlier, owing to the timing of Germany’s Easter break.

Trade data with other European Union members, Germany’s principle trading partners showed that exports had decreased by 29.9 percent on the year, while imports were off by 22.3 percent.

Exports to non-EU countries dropped by 26.5 percent and imports shed 23.8 percent, Destatis said.

Germany’s export-driven economy has been slammed by the global economic slowdown and the government estimates that gross domestic product (GDP) will shrink by 6.0 percent this year.

Destatis said that in the four months from January to April, German exports amounted to €262.8 billion, down from €341.3 billion in the same period a year earlier.

Figures for industrial production in April were due later on Tuesday, but the Economy ministry said Monday that industrial orders, another key indicator, were stable in April compared with the previous month.

That along with more positive leading indicators have suggested that the worst of the recession could be past.

Export expectations included in the widely-watched Ifo business sentiment index posted in May their strongest monthly rise since German reunification in 1990.

In the first quarter of 2009, the economy contracted by 3.8 percent, but the second quarter is expected to show that the rate of decline has slowed. “We think that is is now only a question of time before German companies will shift from reverse into first gear,” Rees said.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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