Germany loses leading export place

Angela Merkel, German Federal Chancellor, Horst Seehofer, Minister-President of the Land of Bavaria, Gloria, Princess of Thurn and Taxis, Johannes Hahn, Member of the EC in charge of Regional Policy, Emilia Müller, Bavarian Minister for Federal and European Affairs, and Hans Schaidinger, Mayor of Regensburg (from left to right). At the 1st Annual Forum of the EU Strategy for the Danube Region. (EC Audiovisual Services).

Angela Merkel, German Federal Chancellor, Horst Seehofer, Minister-President of the Land of Bavaria, Gloria, Princess of Thurn and Taxis, Johannes Hahn, Member of the EC in charge of Regional Policy, Emilia Müller, Bavarian Minister for Federal and European Affairs, and Hans Schaidinger, Mayor of Regensburg (from left to right). At the 1st Annual Forum of the EU Strategy for the Danube Region. (EC Audiovisual Services).

According to the prestigious German Institute for Economic Research (DIW Berlin), the country lost its leading position in the list of exporting nations. It was not only China that surpassed Germany in terms of exports of goods, but also the US exported more products during 2012. DIW is one of the leading economic research institutions in Germany. Its core mandates are applied economic research and economic policy consulting as well as provision of research infrastructure. As an independent non-profit institution, DIW Berlin is committed to serving the common good. The institute was founded in 1925.

Returning to more recent developments the Institute notes that Germany exported a wealth of €1.1 trillion during the twelve month period of 2012. This was a marked increase in relation to 2011, when Germany had exported goods of a value of slightly more than €1 trillion. The export record of 2012 stands as a proof that this country has recovered faster than the rest of Eurozone, from the 2008-2010 credit crunch and sovereign debt crisis.

Undeniably exports are the lifeblood of Germany’s economy. Always according to the same source, “Exports have never been as important to the German economy as they are today. The Federal Republic of Germany is much more dependent on exports than countries of comparable size, and their economic significance has increased considerably in the last decade. In 2012, Germany exported goods worth a total of 1.1 billion euros, corresponding to a record 44 percent of its gross domestic product. Although Germany remains the strongest exporting country in Europe, the importance of the euro area as a sales market has been waning since 2000. The economic community has also lost relevance for other EU countries, as it proved to be comparatively less receptive even before the crisis. However, the German economy has stemmed the decline in sales in these markets by compensating with growth in Asian markets-primarily China-and trade with new EU member states. In addition to broadening the export base, product groups are becoming more diversified. While machinery and vehicles still account for almost half of German exports and easily make the largest contribution to the foreign trade surplus, other product groups, such as chemical products, have been playing an increasingly crucial role…”.

Given that the Institute express authentically the German business community, the observation that the “old” countries of the European Union play a decreasing role in absorbing the country’s exports needs to be further analysed. This may conceal an allegation. It is possible that Berlin wants to say that the European Union’s and more specifically Eurozone’s dependency on Germany may exceed the degree of the German dependency on the rest of the 16 euro area countries.

The fact that Germany has managed to broaden its export base and the list of exported products may signify that this country is progressively emancipating itself from the Eurozone bonds. This allegation however cannot change the fact that the rest of Eurozone countries still account for the majority of German exports. This reality taken together with the observation that Germany has based its wellbeing on exports makes the bond with the Eurozone irreplaceable.

 

 

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

Shenzhen just made all its buses electric, and taxis are next

UN experts report: Business ‘dragging its feet’ on human rights worldwide

There’s a new global technology race. It needs better trade rules

France asks help from Germany but it will not be for free

‘Ghost fishing’ is threatening our oceans. Here’s how we can tackle it

High-technology manufacturing saves the EU industry

Big impact vs big exit: the social side of the start-up game presented at the WSA Global Congress in Vienna

New rules for short-stay visas: EP and Council reach a deal

MEPs vote to limit negative impact of no-deal Brexit on citizens

Bitpay @ TheNextWeb 2014: Innovation’s Best Friend

Climate change and health: public health awareness in an international framework

“Financial crisis will not happen in China!”, the Chinese Premier underlines from Switzerland; the Sting reports live from World Economic Forum 2015 in Davos

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

European Semester 2018 Spring Package: Commission issues recommendations for Member States to achieve sustainable, inclusive and long-term growth

Trade, entrepreneurship and the future of ASEAN’s economy

Myanmar military leaders must face genocide charges – UN report

Commission Work Programme 2019: Delivering on promises and preparing for the future

Erasmus+: an expected budget of €3 billion to be invested in young Europeans and to help create European Universities in 2019

ISIL continues to pose a ‘serious challenge’ worldwide – UN counter-terror chief

UN agencies call for more resettlement and end to detention of asylum seekers in Libya

‘Rare but devastating’ tsunamis underscore need for better preparation, UN chief urges on World Day

Parliament asks for the termination of EU-US bank data deal

Austerity lovers to put a break on Renzi’s growth vision for Europe? the Sting reports live from World Economic Forum 2015 in Davos

UN relief official in Yemen condemns ‘horrific’ attack on passenger buses

MEPs back measures to reconcile career and private life

Taking fast road to ‘e-mobility’ central to a sustainable future: COP24

ECB: Euro area should smooth out the consumption and income shocks of its members

Canada has high levels of well-being and solid growth but trade tensions and housing market pose risks while inclusiveness could be improved

China confirms anti-state-subsidy investigation on EU wine imports

Trust and support of Iraqis essential for success of UN’s Da’esh terror investigation

Germany rules the banking industry of Eurozone

MEPs to debate priorities for 28-29 June EU summit

Second Facebook-Cambridge Analytica hearing: impact on privacy, voting and trust

“An open China brings opportunities to Europe”, a Sting Exclusive by China’s Ambassador to EU

What is the IMF telling Eurozone about fiscal and banking unification?

Statistics show the ugly face of youth training schemes

Villages ‘reduced to ash’ amid ‘barbaric violence’ in DR Congo, reports UN refugee agency

Fresh airstrikes kill dozens in conflict-ravaged Syria

World Health Organization calls crisis meeting over deadly Ebola outbreak in DR Congo

Climate negotiations on the road to a strong Paris agreement rulebook

Those who produce food are among world’s hungriest – UN rights expert

Sochi not far away from Ukraine

RescEU: MEPs vote to upgrade EU civil protection capacity

In Bali, UN chief Guterres outlines importance of international financial cooperation for sustainable development

Human Rights breaches in Iran, Kazakhstan and Guatemala

Pervasive corruption costs $2.6 trillion; disproportionately affects ‘poor and vulnerable’ says UN chief

No end to Deutsche Bank’s problems: new litigations in the US and frailty in EU stress test

Guinea President Alpha Condé: “We must tackle the root causes of migration”

Why cities hold the key to safe, orderly migration

What is adversarial artificial intelligence and why does it matter?

MasterCard at European Business Summit 2015: A focus on innovation will drive inclusive economic growth for Europe

The Parliament sets the way for the European Banking Union

Theresa May attempts to ease the EU stance as Britons request another EU referendum

Europe’s richest regions actively seek investment from China’s biggest banks

The battle for the 2016 EU Budget to shake the Union; Commission and Parliament vs. Germany

90% of European Jews say antisemitism is getting worse

A Sting Exclusive: the EU referendum is about fighting for an outward-looking Britain

The China-US trade deal will be signed on time; the path is set

DR Congo: Following second brutal assault on Ebola clinic, UN health chief vows to continue serving ‘most vulnerable’

Three ways the Fourth Industrial Revolution is shaping geopolitics

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s