Germany ran an overall trade surplus of US$287.3 billion for 2014. Drilling down from that total, Germany demonstrated positive trade balances with 163 of the 225 geographic entities with which it exchanges exports and imports for a subtotal surplus of $386.8 billion.
German exports to exceeded Germany’s imports from other European countries by $153.1 billion in 2014. Similarly, Germany achieved a $75.2 billion trading surplus with North America and an additional $35 billion from Asian partners.
The fact that Germany earns these trade surpluses indicates German competitive advantages for a specific set of export products discussed below.
These major product supply advantages are root causes for the fact that Germany generated the world’s second-biggest trade surplus during 2014, trailing China’s $384.3 billion trade surplus by $97 billion dollars.
Germany’s trade surplus in 2014 has grown by 40.6% since 2010 when its positive balance stood at $204.3 billion.
Germany Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Germany earned the highest trade surpluses in 2014.
- Vehicles: US$154.3 billion (31.2% of all product surpluses)
- Machinery: $107.9 billion (21.8%)
- Optical, technical and medical apparatus: $30.6 billion (6.2%)
- Pharmaceuticals: $30.4 billion (6.2%)
- Plastics and plastic articles: $18.5 billion (3.7%)
- Aircraft, spacecraft: $15.4 billion (3.1%)
- Electronic equipment: $12.9 billion (2.6%)
- Other chemical goods: $10.1 billion (2%)
- Articles of iron or steel: $9.7 billion (2%)
- Paper: $6.9 billion (1.4%)
The above top 10 product categories represent 86.3% of Germany’s overall product-category surplus subtotal which amounted to $494 billion. For that subtotal, 54 of Germany’s 97 general product categories delivered a surplus in 2014.
Growth
Germany enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Furskins and artificial fur: Up 6,892% since 2010 (US$30 million)
- Inorganic chemicals: Up 936.5% ($1.7 billion)
- Cocoa: Up 760.3% ($1061.6 million)
- Raw hides, skins excluding furskins and leather: Up 447.9% ($161.6 million)
- Aircraft, spacecraft: Up 246.9% ($15.4 billion)
- Rubber and rubber articles: Up 171.5% ($412.4 million)
- Meat and seafood preparations: Up 132.2% ($498.4 million)
- Dairy, eggs and honey: Up 118.7% ($3.3 billion)
- Miscellaneous manufactured articles: Up 106.6% ($1.6 billion)
- Miscellaneous food preparations: Up 80.3% ($2.7 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Germany to achieve the highest surpluses in its international trade with other countries.
- Cars: US$113.9 billion
- Medication mixes in dosage: $25.4 billion
- Automobile parts/accessories: $22.4 billion
- Aircraft, spacecraft: $14 billion
- Miscellaneous machinery: $9.9 billion
- Piston engine parts: $8.2 billion
- Centrifuges, filters and purifiers: $7.6 billion
- Tractors: $7.1 billion
- Transmission shafts, gears, clutches: $7.1 billion
- Liquid pumps and elevators: $6.8 billion
- Taps, valves, similar appliances: $6.8 billion
- Dishwashing, clean/dry/fill machines: $6.7 billion
- Electrical/optical circuit boards, panels: $5.8 billion
- Lower-voltage switches, fuses: $5.8 billion
- Trucks: $5.7 billion
Among these, aircraft and spacecraft had the fastest-growing German surplus with a 92.4% gain since 2010. In second place were tractors up 55.2% while exported automobile parts and accessories moved ahead in value by 39.2%.
Germany Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Germany earned the highest trade surpluses in 2014.
- United States: US$61.2 billion (15.8% of German country-specific surpluses)
- United Kingdom: $55.5 billion (14.4%)
- France: $45.7 billion (11.8%)
- Austria: $26.3 billion (6.8%)
- United Arab Emirates: $14.2 billion (3.7%)
- Spain: $13.2 billion (3.4%)
- Poland: $10.6 billion (2.7%)
- Saudi Arabia: $10.5 billion (2.7%)
- South Korea: $10.2 billion (2.6%)
- Sweden: $9.9 billion (2.6%)
The above 10 trade partners represent 66.5% of Germany’s subtotal surplus of $386.8 billion from the 163 geographic entities with which Germany demonstrated competitive trade advantages. That subtotal excludes the 62 trade partners with which Germany incurred trade deficits.
Growth
Germany enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Armenia: Up 5,275% since 2010 (US$36.8 million)
- Pitcairn: Up 3,400% ($0.1 million)
- Saint Kitts/Nevis: Up 1,821% ($68.4 million)
- Fiji: Up 1,372% ($8.3 million)
- British Virgin Islands: Up 618.4% ($152.2 million)
- Angola: Up 604.1% ($332.2 million)
- Zambia: Up 473.8% ($77.6 million)
- Bolivia: Up 437.8% ($32.9 million)
- St. Pierre/Miquelon: Up 296.3% ($634,000)
- Macao: Up 243% ($79.7 million)
From the above list, Germany showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
US
Below are the products that gave Germany the highest surpluses in its international trade with the United States.
- Cars: US$21.4 billion (34.9% of Germany’s surplus versus US)
- Medication mixes in dosage: $7.2 billion (11.7%)
- Automobile parts/accessories: $5.3 billion (8.7%)
- Piston engine parts: $1.2 billion (2%)
- Miscellaneous machinery: $1.2 billion (2%)
- Piston engines: $1.2 billion (1.9%)
- Cruise/cargo ships, barges: $1.1 billion (1.8%)
- Transmission shafts, gears, clutches: $1.1 billion (1.7%)
- Engines (diesel): $1 billion (1.7%)
- Aircraft, spacecraft: $991.4 million (1.6%)
Among these, medication mixes in dosage had the fastest-growing German surplus with America posting a 101.5% gain. In second place were piston engines up 53.5% and automobile parts and accessories ahead by 26.3% from 2010 to 2014.
UK
Below are the products that gave Germany the highest surpluses in its international trade with the United Kingdom.
- Cars: $20 billion (36%)
- Automobile parts/accessories: $3 billion (5.3%)
- Medication mixes in dosage: $2.9 billion (5.2%)
- Blood fractions (including antisera): $2.7 billion (4.9%)
- Trucks: US$1.3 billion (2.4% of Germany’s surplus versus UK)
- Computers, optical readers: $1.2 billion (2.2%)
- Piston engine parts: $1 billion (1.8%)
- Printing machinery: $919.1 million (1.7%)
- Aircraft, spacecraft: $913.9 million (1.6%)
- Aluminum plates, sheets, strips: $891.4 million (1.6%)
Among these, medication mixes in dosage had the fastest-growing German surplus with UK posting a 68.4% gain. In second place was trucks up 64.9% followed by aluminum plates, sheets and strips ahead by 50.8% from 2010 to 2014.
France
Below are the products that gave Germany the highest surpluses in its international trade with France.
- Cars: US$7.2 billion (15.7% of Germany’s surplus versus France)
- Aircraft parts: $3.5 billion (7.6%)
- Computers, optical readers: $1.2 billion (2.7%)
- Printing machinery: $1.1 billion (2.4%)
- Miscellaneous furniture: $966.7 million (2.1%)
- Tractors: $879.7 million (1.9%)
- Processed petroleum oils: $796.2 million (1.7%)
- Electrical/optical circuit boards, panels: $708.9 million (1.6%)
- Medication mixes in dosage: $666.4 million (1.5%)
- Taps, valves, similar appliances: $657.5 million (1.4%)
Among these, processed petroleum oils had the fastest-growing German surplus with France posting a 682.4% gain. In second place were electrical/optical circuit boards or panels up 45.3% and items such as taps and valves ahead by 30.5% from 2010 to 2014.
See also Germany’s Top 10 Exports, Fastest-Growing German Export Products,Germany’s Top 10 Imports and Germany’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on November 27, 2015
Trade Map, International Trade Centre. Accessed on November 27, 2015
Investopedia, Net Exports Definition. Accessed on November 27, 2015