External Trade : Germany

The Federal Republic of Germany’s external trade is booming. According to provisional figures, the year 1996 set new records: Exports soared to DM784.3 billion and imports to DM 686.7 billion, an increase of 4.6 percent and 3.4 percent respectively over the figures for the previous year. The German trade surplus rose by DM 12.3 billion to DM 97.6 billion, the highest figure since the country’s unification.

Today, about 20 percent of all gainfully employed persons work directly or indirectly for export; in other words, one in five jobs is dependent on exports. In the manufacturing industry the percentage is even higher, for one fourth of this sector’s production is exported.

Germany’s main exports in 1996 were motor vehicles (DM 136.7 billion), machinery (DM 136.3 billion), chemical products (DM 113.7 billion) and electrical engineering products (DM 95.9 billion).

German exporters are known for the quality of their products, comprehensive service and on-time delivery. As a country with high wages, Germany has concentrated on sophisticated high-tech products and has thus managed to remain competitive.

The Federal Republic’s most important imports are motor vehicles (13.5 percent), electrical engineering products (10.9 percent) and machinery (9.8 percent).

As a result of its extensive trade relations, Germany is acutely affected by disruptions of world trade and changes in the global economic situation, for these developments have an impact on jobs, investments, profits and standards of living. Thus a stable world economy, free trade and a well-functioning monetary system are crucial prerequisites for consistently positive development of the German economy.