Ger­many Lead­ing Ex­porter

Enterprise - - Exports -

Ger­many, the world’s sec­ond largest ex­porter, is said to be on the verge of a ‘golden decade’. ‘ Made in Ger­many’ brands are seek­ing stronger mar­kets in Asia-Pa­cific, South Africa, Cen­tral Asia and Aus­tralia. The lat­est Ger­man ex­port fig­ures pro­vide more ev­i­dence of a ‘two speed’ Euro zone, with the Ger­man econ­omy con­tin­u­ing to grow strongly.

Ger­many’s for­mula for its out­stand­ing ex­port per­for­mance is de­scribed by ex­perts as, “Ger­many makes things which peo­ple in coun­tries with grow­ing economies want to buy.” The coun­try’s ex­ports in March 2011, to­talled 98.3 bil­lion eu­ros ($142bn; £87bn), 7.3 per­cent higher than Fe­bru­ary 2011. Both im­ports and ex­ports of the coun­try are the high­est since 1950, the year when sta­tis­tics were col­lected for the first time.

China has emerged as a ma­jor ex­port mar­ket for Ger­man prod­ucts. The man­u­fac­tur­ing in­dus­try in China, slated to be­come the world’s largest ex­port mar­ket by 2015, could be­come one of the largest non-Euro­pean cus­tomers of Ger­man prod­ucts. As China grows at a fast pace, it pro­vides mo­men­tum to Ger­many’s ex­ports of ma­chin­ery, con­sumer goods and lux­ury cars.

The im­pact of Ger­man ex­ports on the tar­geted Chinese mar­ket is con­sid­er­ably sig­nif­i­cant. As ex­perts say, “The seg­ments of pro­duc­tion where China is mak­ing a lot of progress are pre­cisely the seg­ments where Ger­man per­for­mance has been very strong. Chinese man­u­fac­tur­ers are be­com­ing more and more spe­cial­ized.”

Re­garded as a turn­ing point in Ger­many’s eco­nomic his­tory, there were par­tic­u­lar strate­gies adopted by the coun­try at an ear­lier stage to­wards this achieve­ment. These in­cluded labour mar­ket re­forms, uti­liz­ing the pool of work­ers from the east of the coun­try and pro­vid­ing pro­tec­tion to work­ers dur­ing the re­ces­sion. In the post-re­ces­sion re­cov­ery, the Ger­man econ­omy grew by 3.6 per­cent, much more than com­pa­ra­ble economies, like those of Bri­tain and the United States.

The sta­bil­ity of Ger­man ex­ports is sup­port­ing the prospects of ex­cel­lent growth op­por­tu­ni­ties in 2011. Along with coun­try’s fo­cus on fu­ture in­dus­tries, the ex­pected Free Trade Agree­ment be­tween the EU and South Korea be­gin­ning in July 2011 is ex­pected to bol­ster trade with Ger­many. While, Aus­tralia, Colom­bia, Fin­land, Kaza­khstan, Qatar and South Africa are the other cho­sen mar­kets for trade part­ner­ship with this Euro­pean nation.

The Ger­man gov­ern­ment pre­dicts eco­nomic growth of 2.6 per­cent this year af­ter a record 3.6 per­cent ex­pan­sion in 2010. To de­scribe the ef­fi­ciency of trade prospects in Ger­many, a se­nior econ­o­mist in Brus­sels con­cisely ex­plains, “In times of in­vest­ment catch­ing up in the emerg­ing world, in­fra­struc­ture re­newals in the west­ern world and a gen­eral shift of en­ergy poli­cies to­ward al­ter­na­tive and re­new­able en­er­gies, Ger­man in­dus­try sim­ply of­fers the right mix.”

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.