Germany is on track to record a record trade deficit with the Asia-Pacific region of nearly 146 billion euros ($163 billion) in 2026, with exports to China declining more than sales growth in other markets in the region, according to a report issued by the German Trade and Investment Agency (GTAI) and seen by Reuters.
These numbers highlight the increasing challenges facing German exporters in China, which was considered one of Germany's most important foreign markets, in light of the expansion of Chinese companies in the local production of advanced technology, machinery and electric cars.
The International Economic Promotion and Development Agency expected that German exports to 29 major economies in Asia and the Pacific would decline by 3.2 percent during the current year, reaching 185.3 billion euros, while imports would rise by 6.4 percent to 330.9 billion euros.
German Chancellor Friedrich Merz will visit Japan, South Korea and Singapore from Monday to Friday. On Tuesday, he called on the middle powers in Europe and Asia to build a strategic alliance in the fields of trade, technology and security.
JTAI noted that China accounts for about half of German merchandise trade with the Asia-Pacific region, making it a major influence on the overall trade figures between the two sides.
She added that German exports to the region, excluding China, are expected to grow by 2.8 percent during 2026, while the trade deficit with the region will shrink to just under 35 billion euros.
According to the report, German machinery exports to China decreased by 18 percent during the first seven months of 2026, compared to the same period of the previous year, while automobile exports declined by 30 percent.
The agency also explained that German car sales in China fell to about half of their previous peak, which exceeded 5 million cars, with local companies strengthening their presence in the electric car market and benefiting from their control over battery supply chains.
GTAI said that India is gaining increasing importance as a market for German exports and a source of goods imported by German companies. Over the past decade, German exports to India have increased, as have German imports from the South Asian country.
The structure of German imports from India is becoming more diversified. In addition to clothing, which remains an important product, German companies' purchases of Indian pharmaceutical products and machinery components are increasing, according to the report.
On the other hand, Japan remains a relatively stable market for German companies, despite the sharp decline in the value of the yen against the euro and the dollar over the past six years, which has weakened Japanese purchasing power.
The agency expects German exports to the 11 member states of the Association of Southeast Asian Nations (ASEAN) to grow faster than imports during 2026, supported by aircraft deliveries.
The cost of living topped the concerns of participants in a global survey for the fifth year in a row, while life expenses and debts emerged as an obstacle to having the desired number of children for 57 percent, according to the results of the fifth edition of the Future Investment Initiative Priorities Index (FII PRIORITY Compass), issued by the Future Investment Initiative Foundation.
The results showed that the cost of living topped concerns at the national level by 56 percent, followed by poverty and inequality issues by 38 percent, then unemployment by 36 percent, reflecting the continued economic pressures in shaping daily choices and families’ aspirations for the future.
Princess Dr. Maha bint Mishari bin Abdulaziz Al Saud, CEO of the Future Investment Initiative Foundation, said that the index reveals common concerns and unmet needs, with the cost of living continuing to be a top global priority for five years.
The results revealed a clear difference in outlook on the future between the Global South and the Global North. 47 percent of participants in the southern countries saw that the world is moving in the right direction, compared to only 15 percent in the northern countries.
In the field of artificial intelligence, the answers showed that its benefits are welcomed, but it is accompanied by broad demands for its regulation. While 60 percent said it improved their lives, 85 percent called for global regulation of it.
Raising the price of a loaf of bread to 500 Sudanese pounds deepened the living pressures on families in Sudan, after the price rose by 35 percent, amid a decline in purchasing power and escalating production costs faced by bakery owners due to the high prices of flour, yeast, and fuel, in addition to the electricity outage and the decline in the value of the pound against the dollar.
Al-Tayeb Al-Jaali, the owner of a bakery in Omdurman, said that the recent increase in the price of a loaf came as a result of the rise in production costs, explaining that the price of a bag of flour reached 190,000 pounds, while the price of a carton of yeast reached 290,000 pounds, coinciding with the increase in workers’ daily wages by 25 percent.
He added that the cost of one thousand liters of gas amounted to four million and 700 thousand pounds, while power outages exceed 12 hours a day, forcing bakery owners to use gasoline to operate them, at a cost of up to 400 thousand pounds per day.
Suleiman Abdullah, a restaurant owner, said that the high cost of bread is adding new burdens to restaurant activity and limiting their ability to provide meals at prices that suit customers.
For her part, Fatima Ahmed said that she is no longer able to provide bread for breakfast for her children before they go to school, adding that the family is trying to manage their children’s needs despite the difficult situation.
In an attempt to address the crisis, the Governor of Khartoum State, Ahmed Othman Hamza, last Monday, inspected the mills of the Rotana factory in the Al-Jili industrial area, north of Bahri, to determine the volume of production and discuss ways to secure flour and continue bakery supplies.
For his part, the head of the Bakeries Union, Issam Okasha, attributed the recent increase to the rise in global wheat prices and the decline in the value of the Sudanese pound, in addition to the increase in the prices of fuel, gas and yeast.
The price of the dollar in the parallel market reached about 10 thousand pounds, which increases the cost of importing production inputs and doubles the pressure on the bakery sector.
In turn, economist Haitham Mohamed Fathi said that the bread crisis reflects structural imbalances in the production system, and is not limited to a passing wave of inflation. He called for dealing with bread as a basic commodity, by creating a strategic stock of wheat and strengthening the state’s role in importing and distributing it.
