Germany Grandaddy Barlow

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Economy of Germany is on the Rise again

Despite global recessionary trends, the German economy has made an incredible recovery, especially in the area of exports. Throughout the recession Germany continued her exports and identified new and stronger partners such as China to purchase her goods. According to the August news reports of 2010, Germany’s economy has shown the fastest growth rate since reunification. Evidence of this growth has been seen in increased investments and a rapid increase in exports.

Germany is among the most active trading economies in the world. In fact Germany export figures reached $1.187 trillion in 2009. Due to a constant export industry, Germany has progressed in rankings to become the world’s fourth largest economy and continues to vie with China for the number one place as the world’s largest exporter. Germany has retained its place as the largest exporter in the European Union.

German superiority in the manufacturing sector sees millions of dollars in income for automobiles and machinery each year. While other world economies are still reeling from the recession and decreased consumer spending, Germany’s Daimler Chrysler has seen a 65% growth in vehicle orders during the months of January to August 2010. The CEO of Daimler attributed this growth to Germany’s new export relationships with growing markets such as China, Indonesia and Latin America.

In fact, figures released by the IFO Institute, detailed a survey conducted among some 7000 business people revealing that German business confidence had reached its highest levels in 2010, since 2007. Much of this increased confidence is due to Germany’s growth in the export sector, coupled with a weaker Euro, which has resulted in making its products cheaper outside its currency bloc. Germany ships most of its exports, including automobiles, machinery, engineering goods, chemicals, pharmaceuticals and weaponry within the 16 member strong Euro zone, but has extended its trade relationships further a field.

Germany’s export of arms doubled during the period of 2004 to 2009. Germany is ranked third in the list of conventional arms exporters in the world. Much of the profit made was attributed to the sale of armored vehicles. Although adding to its export partners, such as the inclusion of Brazil, China and Turkey; Germany continues to trade with France, Netherlands, The United States, the United Kingdom, Italy, Austria and Switzerland. Germany exporters have seen a 29% increase in export figures in 2010.

A problem Germany faces is a lack of fossil fuels and energy sources which has resulted in the need for the Germany import of natural oils and fuels for energy; which accounted for two thirds of all Germany’s energy needs. While Germany’s exports to Brazil, China and Turkey have increased dramatically, so have her imports from these countries. In fact, China has replaced the Netherlands as the number one provider of goods imported by Germany.

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