Dhe business of the German economy with its most important customer, the USA, is doing better than ever, regardless of war worries and rising credit costs. Exports of goods to the United States already surpassed the 100 billion euro mark in August: it has never been cracked so early in the export business with a single country.
Overall, German US exports grew by 27.2 percent in the first eight months compared to the same period last year to 100.2 billion euros, according to preliminary data from the Federal Statistical Office. According to the Federal Association of Wholesale, Foreign Trade and Services (BGA), this is not only due to the weak euro, which is making German products more price-competitive on the American market.
Big fiscal programs under Biden
“The comparatively cheap euro certainly has its share in the good business of German exporters in the USA,” said BGA President Dirk Jandura. Since the beginning of the year, the common currency has lost around 15 percent of its value against the dollar. However, the euro is also proving to be weaker than the Chinese yuan: exports to the People’s Republic increased far less strongly in the first eight months at almost five percent to almost 72 billion euros.
“Therefore, other recent developments are more important for the increase in German exports to the USA,” said Jandura. “The extensive fiscal programs of the Biden administration have boosted the economy in the USA so much that German companies are now also benefiting significantly from them.” Last year, the “American Rescue Plan” worth billions was launched and an investment program of 430 billion dollars was recently decided , the so-called “Inflation Reduction Act”. This drives the demand for goods “Made in Germany”.
“The current weakness of the Chinese economy also favors reorientation movements by German companies, which reduce their export dependency on China and orient themselves more towards the West again,” said the Foreign Trade President. In addition, the suspension of mutual punitive tariffs in the Airbus-Boeing trade dispute and the suspension of the trade conflict over steel and aluminum tariffs have also contributed to the fact that the conditions for bilateral trade with the USA have improved.
