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Ifm Cia 1
Ifm Cia 1
[IMPORT-EXPORT ANALYSIS]
By
MEGHA LV- 2010260
PRIYANKA G- 2010261
RACHITHA HUNS- 2010262
MUSHKAN TODI- 2010286
DHARSHAN C- 2010636
DEPARTMENT OF COMMERCE
Bangalore
2022-2023
TRADE OF GERMANY
The fourth-largest economy in the world, Germany contributed one-fourth (24.7%) of the GDP
of the European Union in 2021. Additionally, it is the sixth-largest market for American exports
and the United States top commercial partner in Europe. It is the largest consumer market in the
European Union with a population of 83.2 million. Germany serves as a cornerstone for many
American businesses looking to develop their European and global expansion strategies due to
the volume of trade, the number of consumers, and its geographic placement in the centre of the
European Union.
IMPORTS OF GERMANY
Germany is a significant importer with $439.4 billion in imports in 2021. Its top imports include
cars ($68.9 billion), vehicle components ($36 billion), medication ($32.2 billion), broadcasting
equipment ($28.7 billion), and vaccines ($25.5 billion) with main import partners being China
($112 billion), Netherlands ($105 billion), Poland ($73.1 billion), France ($65.2 billion) and Italy
($62.1 billion). The country imports a diverse range of products including machinery,
electronics, pharmaceuticals, chemicals, and petroleum products, with many imports coming
from EU countries. Germany's imports are driven by its strong industrial sector, well-developed
infrastructure, and high standard of living. Imports play a crucial role in the country's economy,
helping sustain growth and competitiveness in the global market.
● In 2022, Germany's total import value was estimated to be around €1.1 trillion.
● The country is the world's third-largest importer, behind the United States and China.
● Germany's top imported products by value are cars ($68.9 billion), motor vehicles and
parts ($36 billion), packaged medicaments ($32.2 billion), broadcasting equipment ($28.7
billion), and vaccines and related products ($25.5 billion).
● In terms of imports by sector, the largest sectors are the machinery and equipment sector
(€284 billion in 2022), the chemical and pharmaceutical sector (€125 billion in 2022),
and the automotive sector (€120 billion in 2022).
The following graph shows Germany’s import graph for the past 3 years
EXPORTS OF GERMANY
Germany is a leading exporter with $1.3 trillion in exports in 2021. Its top exports include cars
($123 billion), medication ($60.9 billion), vehicle components ($54.6 billion), vaccines ($34.1
billion), and aircraft ($20.9 billion) with main export partners being the United States ($116
billion), China ($106 billion), France ($101 billion), Netherlands ($84.8B) and United Kingdom
($74.4 billion). The country has a diversified export market, shipping high-quality products such
as cars, machinery, chemicals, pharmaceuticals, and electrical equipment globally. Exports play a
crucial role in Germany's economy, contributing to its growth and competitiveness in the global
market.
In 2022, Germany's total export value was estimated to be around €1.3 trillion.
● The country is the world's second-largest exporter, behind China.
● Germany's top exported products by value are cars ($246 billion), machinery ($131
billion), chemical products ($119 billion), electrical equipment ($102 billion), and
pharmaceuticals ($69 billion).
● The rebound in exports was driven by a strong recovery in demand for cars and
machinery, as well as a resurgence in demand for chemical and pharmaceutical products.
● These numbers show that Germany's economy is highly dependent on exports, and its
export market is highly diverse and dynamic.
The following graph shows Germany’s exports graph for the past 3 years
EXCHANGE RATE
The euro is the official currency of Germany, which is a member of the European Union.
Germany Real Effective Exchange Rate (HCI: 2005=100: Month Avg: Germany) was 93.2 in
Nov 2022, compared with the number of 92.5 in the previous month. Germany Real Effective
Exchange Rate data is updated monthly and averaged 117.2 from Jan 1993 to Nov 2022. In the
latest reports, Germany Short Term Interest Rate: Month End: EURIBOR: 3 Months was
reported at -0.6 % pa in Nov 2021.
BALANCE OF PAYMENTS
In November 2022, Germany's current account showed a surplus of €16.9 billion, an increase of
€11.2 billion from the previous month. The increase in the goods account surplus and the
transition to a surplus in invisible current transactions—which include services as well as
primary and secondary income—were the causes of this. Germany's current account balance was
313.6 trillion US dollars in 2021. Germany's current account balance increased from 35.4 billion
US dollars in 2003 to 316.3 billion US dollars in 2018, but prior to that, it decreased by an
average of 2.55% annually between 2018 and 2021.
Interest rates in Germany are supposed to be 2.50 percent toward the finish of this quarter, as per
Trading Economics’ global macro models and experts’ assumptions. In the long term, Germany’s
interest rates are projected to drift around 3.50 percent in 2023 and 2.75 percent in 2024, as per
our econometric models.
Germany Money Last Q1/23 Q2/23 Q3/23 Q4/23 2020
INFLATION RATES
GDP OF GERMANY
At the end of 2022, the official estimate for Germany's GDP in terms of purchasing power parity
was $4.479 trillion. A database that presents GDP in Purchasing Power Parity terms together
with additional estimates for the size of the informal economy and corrections for outdated GDP
base year data has been created by World Economics. Germany's GDP is estimated by World
Economics to be $4.983 trillion, which is 11% more than official figures.
CONCLUSION
Decisively, the German economy has seen outstanding development since its reunification, yet
should fundamentally evaluate its ongoing wages and reliance on exports to keep on advancing.
Even though it has the biggest national economy in Europe, it should fundamentally survey its
adjustment to European trade guidelines to forestall an unavoidable monetary accident.
Germany's especially high trade surplus has made it the biggest capital exporter of the
international exchange economy. Even though its exports and imports are moderately
comparative, its dependence on income from high exportation can end up being problematic
later.
REFERENCES
https://tradingeconomics.com/germany/money-supply-m1/forecast
https://oec.world/en/profile/country/deu
https://tradingeconomics.com/germany/imports