Cambodia-German trade down 12.58%
Cambodia-German trade down 12.58%
The volume of merchandise traded between Cambodia and Germany reached $435.518 million in the first five months of 2023, down 12.58 per cent year-on-year and down 20.04 per cent half-on-half, even though May saw the best results year-to-date, according to Customs (GDCE).
At the same time, Cambodian goods exports to Germany were to the tune of $348.699 million, down 18.49 per cent year-on-year and down 26.28 per cent half-on-half, according to provisional GDCE data in “International Merchandise Trade Statistics” bulletins.
The Kingdom imported $86.819 million worth of goods from the world’s fourth largest economy, up 23.33 per cent year-on-year and up 21.09 per cent half-on-half.
Cambodia’s trade surplus – the amount by which a country’s exports exceed its imports – with the European nation for the five-month period clocked in at $261.879 million, shrinking by 26.73 per cent year-on-year as well as by 34.74 per cent half-on-half.
Germany was Cambodia’s eighth biggest trading partner for the period, representing 2.257 per cent, 3.797 per cent and 0.859 per cent of the Kingdom’s international trade ($19.293 billion), exports ($9.183B) and imports ($10.109B), respectively, GDCE figures indicate.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng told The Post on June 22 that the ongoing global economic crisis has continued to put pressure on overseas purchase orders, particularly for non-essential non-food items.
Given that most of the Kingdom’s exports to Germany have typically been textile-related goods, speed bumps were inevitable, he asserted.
Heng claimed that despite this, things should start to improve somewhat before long as a result of positive political and diplomatic engagement amongst the major economies.
“As Germany is a member of the EU, which grants preferential treatment for goods imported from Cambodia under EBA, I believe that bilateral trade will soon increase, through effective operational cooperation between the two countries’ public and private sectors,” he said, referring to the 27-nation European bloc’s ‘Everything But Arms’ trade scheme.
For reference, GDCE figures show that Cambodia and Germany traded more merchandise in May than any other month this year, registering $97.99 million, or 12.50 per cent higher than the $87.104 million average.
According to Heng, in general, the bulk of Cambodian exports to Germany are garments, footwear and travel goods, bicycles, electrical components and agricultural products, while notable imports include vehicles, heavy machinery, furniture and construction materials.
According to the GDCE, in May alone, Cambodian exports to Germany stood at $77.640 million, down 20.5 per cent year-on-year, and down 9.65 per cent half-on-half, but up 32.3 per cent quarter-on-quarter, and up 22.89 per cent month-on-month. May has been the second best export month so far this year, after March ($81.433M).
Last month’s imports, meanwhile, came in at $20.351 million, up 29.5 per cent year-on-year, down 8.9 per cent half-on-half, up 45.1 per cent quarter-on-quarter, and down 11.3 per cent month-on-month. The best import month thus far in 2023 has been April ($22.935M), with May taking second.
Germany was the Kingdom’s seventh largest export destination and 11th-ranked import source in May, representing 2.372 per cent, 3.983 per cent and 0.933 per cent of the Kingdom’s international trade ($4.132B), exports ($1.949B) and imports ($2.182B), respectively, according to the GDCE.
Royal Academy of Cambodia economist Hong Vanak stressed that the EU’s largest economy and most populous nation represents a large market for imports, suggesting that attracting more German purchase orders and investors would be a boon for the Cambodian economy.
“Because of their strong bilateral cooperation in all fields, Germany will continue to be a key market for Cambodian exports,” he said, noting that the European nation provides a lot of aid to the Kingdom.
According to the GDCE, the Cambodia-Germany merchandise trade in 2022 was valued at $1.247 billion, up 19.28 per cent over 2021 and up 46.97 per cent versus 2015.
Cambodian goods exports to and imports from the EU’s fourth largest country by area last year amounted to $1.084 billion and $163.280 million, respectively up 23.03 per cent and down 0.79 per cent year-on-year, expanding the former’s trade deficit with the latter by 28.50 per cent to $920.344 million.
Germany was Cambodia’s eighth largest merchandise trading partner in 2022, accounting for 2.378 per cent of the global total of $52.425 billion, compared to the top three: mainland China ($11.686B; 22.291%), the US ($9.281B; 17.704%) and Vietnam ($6.136B; 11.704%).
