The world’s fourth largest economy is Germany. Being the leader in automobile production, Germany is considered as Europe’s largest economy. This economic leader has been the innovator, driver, and beneficiary of a globalized trading after the age of Industrialization.
Germany has spearheaded great industrial innovations including automobile design and manufacture. Germany’s exports account for more than 30% of the national output. This only shows that most of the manufactured goods and products of Germany go out of the country to the global market. As such, Germany is considered the second largest exporter in the world in 2009, which amounts to $1.17 trillion worth of exported products and merchandise.
Since Germany excels in automobile production and machine tools production, automobiles and machine tools are among its major exports. Ranking third in the world’s largest producers of automobiles, Germany shares some of the world’s automobile market with the United States and Japan.
The main exports of Germany aside from automobiles and machine tools include motor vehicle trailers, semi trailers, chemicals, electrical machinery, and chemical products. While Germany trades with other countries in the world, its top trading partners are its European neighbors. These countries contribute to two-thirds of Germany’s total trade share.
The World Trade Organization (WTO) of which Germany is a member of, cited Germany as the world’s top exporter in 2005. This is the consequence to their largest world market share in machine tools in 2004. Germany’s market success is due to the fact that products with a Made in Germany seal guarantees quality. Most consumers do not hesitate making their purchases if products are made in Germany. Thus, German goods and merchandise do well in the global market.
Aside from these, Germany also is the leader of mechanical engineering. For this reason, Germany holds about 20% of the world market on products related to mechanical engineering. These products include electronics, goods, chemicals, vehicles, optics, machinery, and ship building.
Some of Germany’s export destinations include European countries, China, Japan, South Africa, Australia, South Korea, Brazil, Canada, and the United States. Correspondingly, these countries import their products to Germany too. Recently, Germany has tightened its trading with one of the fastest growing economies of Asia, China. Some imports to Germany include minerals, precious gems, and agricultural products.
Despite Germany’s top ranking positions in the export and import ventures, its economy is one of the slow-growing economies in the Euro zone. Compared to its European neighbors, the rate at which the economy of Germany is growing is relatively slow, considering the fact that it is one of the world’s largest traders. Experts attribute this to Germany’s aging population, and to its high unemployment rate. With these challenges at hand, Germany cannot really totally soar forward economically.