Portfolio – Case of Germany
Degree Programme in International Business
and Marketing Logistics
TABLE OF CONTENT
1 Overview of German Economy
German economy is currently the largest economy of Europe and the fourth of the world, accounts for about one-fifth of European Union GDP. Despite suffering from the economic crisis, German economy has improved noticeably in recent years. The rise of export is the key factor contributes to Germany’s development. The share of export in GDP has rocketed more than double since 1993, from 22% to 51.8% in 2012. The balance between import and export of Germany has been quite stable and sustained in recent years, as proportion of Germany’s export is approximately 8% of the world, while Germany’s import contributes 6% to the world’s, recorded in 2013. Germany was forecasted to be at 0.5% of GDP growth in this year. (DeutscheBank 2013) 2 Germany’s import and export structure
2.1 Germany’s Export
Since the global crisis in 2008, while many countries have been struggling with debt and governmental deficit, German export has significantly grown, enabling this country’s economy to quickly get by the hard time of economic downturn. Despite the sufferings from the effect of debt crisis in Euro zone which marked a downturn in the last quarter of 2012, German export rebounded in 2013 and was forecasted to gain back its growth’s pace in 2014. Performance of German economy, particularly the growth of export, has been the synergy for others in Europe to get by economic crisis.
Germany is currently the world’s third largest exporter and the export leader in Euro zone. Germany’s export of goods and service is worth $1,892.1 billion, contribute 51.8% to GDP in 2012, increase 3.7% from 2011. The share of service export is 16% and goods export is 84%. Goods export is the main platform of Germany economy. Eurozone was the biggest export market of Germany, as more it is the destination of more than 69% of German export, while 12 % of the export went to US and 16% went to Asia. But, the growth of export to traditional market has been lost its quick pace. Instead, Germany was changing its export’s direction to emerging market such as China, Brazil, Russia, India and South Asia as the proportion of German export to these markets has been significantly increasing in the past few years and keeps a stable growth’s pace. But European market still plays a key part of German export, and the stability of this market will decide the growth of German economy. France, UK and Netherland are still the main partners of German exporters as their shares of total export are 10.1%, 7.1% and 6.9% respectively. (Federal Statistical Office 2013.; OECD-ilibrary 2013.)
Main areas of German export include vehicles and machinery, chemicals, raw materials, ready-made products and household equipment. Machines and vehicle export is traditionally the strength of Germany as shares nearly 48% of total export, 3.1% more than 2011. German export of chemical and finalized products also witnessed growth from 2011. The former increased 3.9% whist the later grew 0.4% in 2012. Key areas of German chemical export were organic chemicals, pharmaceuticals and primary synthetic products. (Federal Statistical Office 2013.) 2.2 Germany’s Import
At the same situation with exports, German import was affected by the economic downturn in the last quarter of 2012 and the beginning of 2013. From 2008, the annual growth’s rate of German import is stable at 3.7% on average, but it dropped at 0.7% from 2011 to 2012. Total import including commodities, raw materials and services of Germany in 2012 was worth $ 1796 billion, accounted for 45.9% of GDP. Share of goods import was 80% of total import of Germany, the rest was import of services. (Federal Statistical Office 2013.)
The main import’s products were foodstuffs, agricultural products, oil and gas, metals, data processing...
References: Hollensen, S. 2012. Essential of Global marketing. Rotolito Lombarna: Pearson.
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