Germany is Europe’s largest economy and the fourth largest in the world. Their success is mainly based on exporting. They are the second-largest exporting country in the world, beaten only by China.
Recently, Germany has increased its exports even more! This bodes well for their export driven economy. Not only this, but unemployment has gone down and business confidence has gone up in Germany as well. It seems like things couldn’t be better! However, this strong trend does not seem likely to continue. Experts still predict growth in the coming months, but not as rapid as has been witnessed in the last few months.
Along with the recent increase in exports, came an increase in industrial output. With a rising demand coming from Asia and the United States, Germany has been able to increase their production significantly. The German government is hopeful that their export based system will continue to thrive because of this. Still, they do want to increase demand at home and from other European countries as well.
Germany’s top export partners are France, the United States, the United Kingdom, Italy and the Netherlands. Germany is trying to expand its exporting to even more countries because many in the euro zone are beginning to demand less. It is still unclear how Germany’s export based economy will do in the long run. If globalization continues to grow, it will be favorable for Germany and other exporting countries.