Germany Leading Exporter
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.”