Reliance of the German economy on the Red Sea unfolds
Published on 20 August 2025 by the ifo Institute
A recent report, published by an independent institution and commissioned by the Federal Ministry for Economic Affairs and Energy, has shed light on the significant dependence of German imports and exports on six central maritime bottlenecks.
The six maritime chokepoints, as identified in the report, are the Hormuz Strait, the Bab al-Mandab Strait, the Malacca Strait, the Taiwan Strait, the Suez Canal, and the Panama Canal.
The Malacca Strait accounts for 8.7% of all German imports, making it the most significant of these routes. The Taiwan Strait follows closely, accounting for 7.1% of all German imports. However, the report does not provide new statistics about the significance of the Hormuz Strait, the Bab al-Mandab Strait, the Malacca Strait, the Taiwan Strait, the Suez Canal, and the Panama Canal for German foreign trade.
The Hormuz Strait, on the other hand, has a lower significance for German foreign trade, with only 0.4% of all imports in 2023. The Panama Canal's significance is even lower, with only 0.5% of all imports in the same year.
The Red Sea route, which carries various critical raw materials and important industrial intermediate products, is of significant geoeconomic importance to Germany. In 2023, 136 billion euros worth of German imports arrived via the Red Sea.
Blockades or disruptions of these sea routes, such as those recently caused by Houthi rebel attacks in Yemen, can have significant economic consequences for Germany. The report emphasises the need for Germany to maintain the security and stability of these vital trade routes.
It is important to note that the report does not necessarily reflect the views of the ifo Institute as an institution. The views expressed in the report are those of the authors and not necessarily those of the Federal Ministry of Economics and Energy or the Minister.
The report does not specify the exact data used for the 2025 evaluation. Furthermore, the important university co-authoring the study report is not specified in the available search results.
The report does not contain any advertisements and is available for public access.
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