As many nations like the US are suffering from a trade deficit, Germany has become a beacon of how to build a growing trade surplus. And while there are smart international shipping strategies used by German businesses, the reasons for the trade surplus go beyond logistics. It all has to do with the economy.
Currently, the economy in Europe is not good. There is a rising unemployment and the value of the Euro is declining. To battle these harsh economic circumstances, the European Central Bank is offering monetary stimulus. However, many German leaders have criticized the move. Being the criticism, it seems that nearly two-thirds of Germany’s exports are outside of the Euro currency. As a result of this, Germany’s economy is better. German citizens recently welcomed lower energy prices and lower inflation. Both of these have led to more consumer spending in Germany, with a demand for some imported products.
In 2014, Germany set new records for their trade, including record imports, exports and a trade surplus. This current trade surplus is the longest lasting in the entire world. And their 2014 trade surplus broke their previous 2007 record. Exports in Germany increased 3.7% last year. There is some hope that Germany can top this with a 4% increase in 2015.
While speaking to a trusted freight forwarder will help with ensuring that a company receives top-notch shipping services from Germany, it is the economic circumstances in Germany that led to this trade surplus. Perhaps the US can learn a few lessons from Germany about how to balance trade.