BERLIN (Reuters) - German mechanical engineering exports declined in line with production in 2024, the VDMA industry association said in a statement on Friday, adding that economic and structural challenges were dampening demand globally.

Exports from Germany of machinery and equipment were down 5% compared to the previous year, VDMA said citing preliminary data from the federal statistics agency, adding that this roughly corresponded to a 7.5% decline in production in the sector.

The VDMA called upon the European Union to prevent a trade dispute with the United States, which "would only produce losers on both sides", as well as finalising a free trade agreement with the Mercosur states.

(Writing by Friederike Heine, Editing by Rachel More)