Contribution of trade to German GDP output

First, watch the PBS NewsHour video “How Germany Became Europe’s Richest CountryLinks to an external site. and read the Bloomberg article “German Trade Surplus Widens as Exports Unexpectedly Increase Links to an external site.” to learn more about German approach to trade and creating an export surplus.  

Then, respond to the following three questions –

• Find out the contribution of trade to German GDP output and its current trade balance using data from WorldBank Links to an external site.. What is the contribution of trade to German GDP and does Germany have a trade surplus?
• If so, what is Germany doing differently to create manufacturing jobs and export surplus?
• What lessons can we learn to reduce the U.S. trade deficit?

Answer

According to the World Bank, the contribution of exports to Germany’s Gross Domestic Product (GDP) was approximately 43.5% in 2021. In terms of its trade balance, Germany consistently runs a trade surplus, meaning that it exports more goods and services than it imports.

Germany’s export surplus can be attributed to a number of factors. One key factor is the country’s strong manufacturing sector, which is highly specialized and productive. Germany has also made significant investments in research and development, which has allowed it to develop innovative and high-quality products that are in high demand globally. In addition, the country has a well-developed infrastructure and transportation system, which enables it to efficiently Order a customized and more comprehensive answer here

To reduce the U.S. trade deficit, there are a few lessons that can be learned from Germany’s approach to trade. One potential approach would be to invest in the development of specialized manufacturing sectors and to focus on producing high-quality, innovative products. In addition, investing in research and development and improving transportation infrastructure could also help the U.S. to increase exports and reduce its trade deficit. Finally, negotiating fair trade Order a customized and more comprehensive answer here