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 GDP was 47.4% in 2020. Germany has a trade surplus, which means that the value of its exports exceeds the value of its imports. In 2020, Germany’s trade surplus was $287.5 billion.

Germany has been successful in creating manufacturing jobs and a trade surplus through a number of strategies, including investing heavily in education and training, supporting research and development, and promoting innovation. The country also has a strong export-oriented economy, with a focus on high-quality and specialized products. Additionally, Germany Order a customized and more comprehensive answer here