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 an increase of 4.0 percent 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 percent 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 reached a volume of 113.0 billion euros from January through May 2026. That was 7.5 percent 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 percent in May to 21.8 billion euros. From January through May, imports totaled 117.5 billion euros—an increase of 5.2 percent.

Trends in exports and imports have once again reduced the sector’s trade deficit. “Because exports have grown significantly more 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 percent to 11.2 billion euros.

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

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

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

From January through May 2026, German exports of electrical goods to the EU totaled 62.8 billion euros. This represented a 15.4 percent 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 percent 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 fallen again—albeit only slightly, by 1.1 percent, to 2.0 billion euros. At the same time, exports to China declined by a significant 14.3 percent 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 percent to 191 million euros, to Malaysia by 15.1 percent to 225 million euros, to Japan by 7.7 percent to 232 million euros, and to Brazil by 6.0 percent to 150 million euros.

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

From January through May 2026, exports to non-EU countries remained virtually stable: At 50.2 billion euros, they were only 0.4 percent below the same period the previous year.