Germany’s exports rose for the third time last year, bringing the country’s economy to a new record. According to the Federal Statistics Office, Germany’s exports in 2016, up 0.2 percent from 2015, amounted to 1.208 trillion euros. While imports into the country grew by only 0.6%, the Federal Republic has historically reached a trade surplus of € ۲۵۲٫۹ billion, accounting for revenue from services, primary and secondary income, its trade surplus Reaching 266 billion euros, rising substantially compared to 2015 (252.6 billion euros). Accordingly, the income of German companies from foreign trade has been net worth more than 250 billion euros.
German trade surplus, a threat to economic stability
While German leaders and riders are pleased with the lucrative exports of their country, nevertheless, there are many protests from outside the country, since extramarital exports of Germany have caused problems for many countries in recent years. As the eurozone’s most troubled countries in southern Europe have consistently faced high trade deficits. Only between 2010 and 2015, after Germany’s exports to the most troubled European countries, Germany imported 19 billion euros from Greece, 56 billion euros from Italy, and 63 billion euros from Spain. France has also experienced a withdrawal of € ۲۱۰ billion in Germany over the same period. Because of the harmful consequences of such an outflow of capital, the EU has declared a trade surplus of more than 6% of GDP (GDP) as a threat to economic stability.
But the Federal Republic of Germany has been on the border since the year 2006 for the eurozone countries in southern Europe, increasing its trade surplus from 3.8% in 2015 to 6.8% in 2016. From 2010 to 2015, the United States has had about € ۲۲۵ billion worth of capital outflow to Germany, which has led the new US president to no longer offset this situation, and in order to prevent the continuation of this trend, it will consider punitive tariffs to export to its country. This is a serious threat to the German economy.
Restricted to staying in the EU
Despite the recent German record in the export sector, its economic future is uncertain as the German companies’ focus on the European Union is steadily increasing, so that in 2015, 56.6% of foreign direct investment Germany is in the European Union, and its share of exports to the European Union has more than 58% this year, up from the previous year, and has grown by 2.2% in 2016. On the other hand, federal exports to third countries, which have been the main source of export growth for many years, have dropped by 0.2 percent. As a result, Germany’s dependence on the European Union is on the increase, as the euro crisis is intensifying. In addition, the most important long-term opportunities for economic growth are outside Europe. According to the United Nations, the contribution of the continent to the real world gross domestic product declined from 1. 40 percent in 1970 to 9.27 percent in 2014, and this downward trend will continue in the coming years.
Therefore, countries that, like Britain, have invested mostly outside of Europe and whose exports are mostly outside the continent of Europe, they have been strategically better off.
Serious threats to the German economy
The problems that the German companies are threatening is most of all from the United Kingdom and the United States. Britain has become the third-largest buyer of German products in recent years, and in 2015, the value of purchasing German goods by the country was about 90 billion euros. According to the preliminary calculations of the German Chamber of Commerce and Industry (IHK), following the British withdrawal referendum, followed by the depreciation of the pound, exports of German goods to the country became more expensive and this reduced the 3% decline in Germany’s exports to the country. 2016 came along. Therefore, if the Federal Republic fails to provide favorable conditions for the German industry after the UK’s full withdrawal from the Union, this would be far worse. In addition, with the new presidency of the United States, it is unclear how the German exports will go on. The United States is currently Germany’s most important trading partner, so if the German government fails to comply with its trade restrictions, the German economy will suffer serious damage.
Uncertain markets
German exports to the motor vehicle sector in 2015 were about 227 billion euro, accounting for 19% of total exports. The United States, with 15% share of German and British motor vehicles imported with a 13% share, are the main buyers of Germany’s exports of goods. Therefore, the threat of a new US president imposing punitive tariffs on foreign imports, even when Britain’s withdrawal from the EU could seriously endanger Germany’s exports to the country, will be a tough blow to the auto industry.
Depression in the machinery sector
According to the Federal Statistics Office, production of German machinery declined by about 0.2 percent in real terms over the past year. The German Industrial Machinery and Equipment Company (VDMA) also reported a 2% decline in orders for this sector last year. Especially later this year,
