The Strategist

"Made in Germany" Is the New Trend

09/09/2015 - 15:24

For the first time in half a century, the United States became the largest market for German products, ahead of France.

fdecomite via flickr
fdecomite via flickr
German exporters have started the second half of 2015 with record results. Deliveries of German production to foreign markets rose in July this year compared with July 2014 by 6.2 percent to 107.1 billion euros, reported on September 8 the German Federal Statistical Office (Destatis).
After clearing the obtained data from the seasonal and calendar factors, the statistics have concluded that the current July was the best month in the history of German foreign trade, as German imports increased by 6.1 percent to 82.1 billion euros having reached the record proportions. Foreign trade surplus also proved to be an unprecedented high (25 billion euros). Thus, the chances that the whole 2015 would be a record, have been significantly increased

The most important markets for German products are European Union countries. In July, they bought the goods at 60.4 billion euros - 6 percent more than a year ago.

Within the European Union, nearly two-thirds of exports traditionally go to Eurozone countries. Although many of them have not yet overcome the consequences of the debt crisis, the growth of sales in these countries was quite decent (5.5 percent).

At the same time, deliveries to EU countries outside the monetary union have increased by 6.9 percent. The low rate of the euro obviously contributed to this, boosting demand for goods from Germany, in particular in the UK. Moreover, the British economy is now growing very rapidly.

In countries outside the EU, sales of German products increased in July by 6.4 percent. It was, of course, partly caused by the low rate of the euro against the US dollar, increased the price competitiveness of Germany products, both in America and in major Asian markets.

However, the growth of German exports to the United States is obliged not only to favorable exchange rate. The key role was played by the lift, which is going through the planet's leading economy. Thanks to this, the United States, according to Destatis, turned into the largest market for German exporters in the first half of 2015, shifting France out of the first place, held since 1961.

However, experts do not hurry to proclaim the leading countries turnover as falling value of the French market may be a temporary phenomenon related to the economic reforms in France.

 As for another fundamentally important for Germany market, China, the economic problems, growing there in recent weeks, did not affected the German foreign trade statistics. It is possible that growth of German exports will slightly decline in the report for August.

However, a number of German experts are basing on the fact that the boom in sales in the US, the UK and the euro zone will be able to more than offset the reduction in shipments to China and some other major markets outside the EU, including Russia.