The German electrical and digital industry continues to grow in its international business, but is losing momentum. According to the industry association ZVEI, companies recorded a volume of 20.7 billion euros in goods shipped abroad in May 2026. This represents a 4.0% increase compared with the same month last year. As a result, the growth rate was only half as high as the average for the previous four months of the current year.

“However, at 4.0% year-over-year, the growth rate was only half as high as the average for the previous four months of the current year,” said ZVEI Chief Economist Dr. Andreas Gontermann.

Looking at the first five months of the year, the overall picture remains positive: Aggregate industry exports from January through May 2026 totaled 113.0 billion euros. That was 7.5% more than in the same period a year earlier.

At the same time, imports of electrical and electronic goods into Germany rose by 3.8% in May to 21.8 billion euros. From January through May, imports totaled 117.5 billion euros—an increase of 5.2%.

Trends in exports and imports have once again reduced the sector’s trade deficit. “Because exports have grown significantly faster than imports so far this year, the sector’s trade deficit has narrowed again from just over six billion euros to four and a half billion euros compared to the same period last year,” said Gontermann.

Europe is driving growth

The European single market remains the most important driver of growth. Shipments to the EU posted double-digit growth in May: Compared with the same month last year, they rose by 11.7% to 11.2 billion euros.

Trade with the Czech Republic grew particularly strongly. German electrical exports to that country rose by 41.7% to 1.2 billion euros. Other European markets also posted significant growth: Exports to Sweden increased by 20.6% to 483 million euros, to Poland by 17.7% to 1.2 billion euros, and to Slovakia by 17.2% to 270 million euros.

Italy (+13.4% to 1.0 billion euros), Romania (+13.3% to 515 million euros), and Spain (+12.4% to 888 million euros) also reported double-digit growth rates.

Exports to the Netherlands (+9.7% to 1.3 billion euros), Belgium (+7.8% to 482 million euros), Hungary (+5.5% to 667 million euros), France (+4.7% to 1.2 billion euros), Austria (+4.3% to 850 million euros), and Portugal (+1.7% to 209 million euros) were all higher than the previous year’s levels. Denmark was an exception: Exports to that country fell by 16.4% to 238 million euros.

From January through May 2026, German electrical exports to the EU totaled 62.8 billion euros. This represented a 15.4% increase over the previous year's figure.

The U.S. and China are slowing down business outside Europe

The picture is different outside the EU. German electrical exports to third countries fell by 3.9% in May to 9.5 billion euros.

“This was due in no small part to declining exports to the industry’s two largest individual markets,” said Gontermann. “Following a temporary recovery in April, shipments to the U.S. have now declined again—albeit only slightly, by 1.1%, to 2.0 billion euros. At the same time, exports to China fell by a significant 14.3% to 1.7 billion euros.”

While the industry’s two largest individual markets showed weakness, other countries posted gains. Exports to Hong Kong rose by 15.2% to 191 million euros, to Malaysia by 15.1% to 225 million euros, to Japan by 7.7% to 232 million euros, and to Brazil by 6.0% to 150 million euros.

By contrast, there were declines in business with Singapore (-1.9% to 152 million euros), Turkey (-2.1% to 314 million euros), Switzerland (-2.8% to 674 million euros), Mexico (-7.6% to 261 million euros), the United Kingdom (-8.3% to 714 million euros), and the United Arab Emirates (-9.0% to 160 million euros). The declines were particularly pronounced for shipments to South Korea (-11.7% to 241 million euros) and Taiwan (-29.0% to 226 million euros).

From January through May 2026, exports to third countries outside the EU remained virtually stable: At 50.2 billion euros, they were only 0.4% below the same period last year.