Trade Pressures Hit Korea as Germany, NZ Post Positive Data: In reviewing the latest global economic developments, Monday, August 25, 2025,

Brought mixed signals regarding the performance of major economies.

New Zealand showed positive indicators as retail sales grew better than expected,

reflecting improved consumer confidence despite high interest rates.

In Germany, the rise in the IFO Business Climate Index boosted hopes for a relative recovery in corporate sentiment towards Europe’s largest economy.
Meanwhile, South Korea saw a sharp drop in steel exports to the United States,

hitting its lowest level in over four years.

This was largely due to the new U.S. tariffs, reflecting ongoing trade tensions between the two countries.

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New Zealand
Germany
South Korea

New Zealand’s Retail Sales Grow Beyond Expectations in Q2

Data from New Zealand’s National Statistics Office released on Monday revealed a positive performance

in the retail sector during Q2 of this year, indicating improved consumer spending after a slowdown.
According to the report, retail sales rose by 0.5% quarter-on-quarter,

surpassing market expectations of a 0.2% contraction.

This marks a notable improvement compared to Q1 2024, which saw a 0.8% decline.
Core retail sales (excluding vehicles) also grew by 0.7% in Q2, up from 0.4% in Q1,

indicating a broader recovery in consumer activity.
These figures are seen as supportive of the New Zealand economy,

especially amid inflationary pressures and high interest rates,

which suggests some optimism about the resilience of domestic economic activity.

Germany’s IFO Business Climate Index Beats Expectations in August

The IFO Institute for Economic Research released data on Monday showing the Business Climate Index

In Germany, the index rose to 89 points in August, beating analysts’ forecasts of 88.7 points and improving from 88.6 points in July.

This suggests a modest recovery in corporate confidence in Europe’s largest economy.

South Korea’s Steel Exports to the U.S. Plunge to Lowest in Over Four Years

The Korea International Trade Association (KITA) reported Sunday that South Korea’s steel

exports to the United States plummeted sharply in July 2025 amid new U.S. tariff measures.
Exports fell 26% year-on-year to $283 million,

compared to $382 million in July 2024—the lowest since March 2021.

Export volumes dropped 24% to 194,000 tons, their lowest level since January 2023.
This decline followed U.S. President Donald Trump’s June 2025 decision

to impose 50% tariffs on steel and aluminum imports to revive the domestic industry.

In July, an additional 15% tariff was imposed on South Korean imports,

described as a “phase deal” to ease trade tensions.
Despite South Korean President Lee Jae-myung’s assurances that the agreement

placed his country in a balanced or better position compared to other nations,

Data indicate that Korean exports to the U.S. are under heavy pressure since the broad U.S. tariffs were imposed.

Trade Pressures Hit Korea as Germany, NZ Post Positive Data

Trade Pressures Hit Korea as Germany, NZ Post Positive Data

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