The United States has become Germany’s biggest single trading partner for the first time since 2015, surpassing China, as exports to China declined, according to official figures released on Wednesday.
Trade between the US and Germany, Europe’s largest economy, rose by 0.1 per cent to 252.8 billion euros ($264.3 billion) in 2023, news agency AP reported quoting Germany’s Federal Statistical Office data.
While, trade with China which had been Germany’s largest trading partner every year since 2016, fell by 3.1 per cent to 246.3 billion euros. The Netherlands came in third place with a total trade volume of 205.7 billion euros, marking a 4.2 per cent decrease.
Germany has struggled with significant economic growth over the past five years. Although it has long been a global leader in exports, particularly in high-end engineered products such as industrial machinery and luxury cars, the country has faced growing competition from Chinese companies and other factors, leading to economic contraction in the last two years.
Addressing these economic challenges will be a priority for the government that emerges from Sunday’s German election, which will also need to address the trade policies of the new US administration.
Germany’s trade surplus with the US grew to 70 billion euros last year, up from 63.3 billion euros in 2023. Exports to the U.S. increased by 2.2 per cent to 161.4 billion euros, while imports from the US declined by 3.4 per cent to 91.4 billion euros. The US has been Germany’s largest single export destination since 2015.
Meanwhile, Germany’s trade deficit with China widened. Imports from China fell by 0.3 per cent to 156.3 billion euros, while exports to China dropped by 7.6 per cent to 90 billion euros.
Overall, Germany’s total exports amounted to 1.56 trillion euros last year, a 1.2 per cent decline compared to 2023, while imports from around the world dropped by 3 per cent to 1.32 trillion euros