The strong dollar has an unexpected victim in the German economy. German unemployment is at a 16-year low. Germany’s trade surplus expanded by 4.2% in 2015 against 2014. German exports rose by 12.5%. German exports to China increased by 13.5%. German exports to the U.S. increased by 7.9%. The U.S. trade deficit with Germany shrank by 1.2% in 2015, the first year-over-year decline in over 10 years.
Germany has for a long time enjoyed a trade surplus with the U.S. The U.S. has enjoyed a trade surplus with Germany for some time now. The U.S. has enjoyed a trade surplus with Germany because German exports are more competitive in the U.S., less expensive, more abundant, and more sophisticated.
From 2016 to 2015, Germany’s annual trade surplus with the U.S. grew by 12.5% (versus 3.8% for China, 1.6% for the World, 0.6% for the U.S. as a whole), while the U.S. trade deficit with Germany contracted by 2.0% (versus a 1.2% deficit for the U.S. as a whole). In 2015, Germany’s exports to China represented 34.7% of all German exports. In 2015, Germany’s exports to the U.S. represented only 22.8% of all German exports.
According to the World Bank, Germany received $1,521.6 billion in goods and services from the U.S., or 16.9% of German exports in 2015. Germany received $1,927.3 billion in goods and services from China, or 30.2% of German exports in 2015. Germany received $2,611.7 billion in goods and services from the World, or 23.8% of German exports in 2015.
Germany’s total trade surplus with the U.S. was 1.1% of German gross domestic
