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 World Bank data, the contribution of trade to Germany’s GDP was 47.7% in 2020. Germany has a trade surplus, meaning that it exports more goods and services than it imports. In 2020, Germany’s trade surplus was $318.6 billion.

Germany has been successful in creating manufacturing jobs and an export surplus through a number of strategies. One key factor has been the country’s strong focus on education and training, which has helped to produce a skilled workforce that is well-equipped to work in high-tech manufacturing industries. Germany has also made significant Order a customized and more comprehensive answer here

To reduce the U.S. trade deficit, one potential lesson that could be drawn from Germany’s approach is the importance of investing in education and training to create a skilled workforce that is capable of competing in the global marketplace. The U.S. could also consider increasing investments in research and development to help maintain a competitive edge in the global economy. Additionally, the U.S. could work to negotiate more favorable trade Order a customized and more comprehensive answer here