Germany`s Position in International Trade and Investment Structure of the presentation Sources Background information Trade growth German trade (data for 2018) Germany`s most important Export and Import partners German FDI (inward) German FDI (outward) Conclusions Sources Presentation is based on: Germany Trade and Investment Statistical Note by OECD (2017) https://www.oecd.org/investment/Germany-trade-investment-statistical-countrynote.pdf Statistisches Bundesamt Destatis -> Foreign Trade https://www.destatis.de/EN/Themes/Economy/Foreign-Trade/_node.html World Integrated Trade Solution (WITS) https://wits.worldbank.org/CountryProfile/en/DEU https://www.ceicdata.com/en/indicator/germany/foreign-direct-investment Germany Trade and Invest (GTI) https://www.gtai.de/resource/blob/63824/b43c3f08a45892076323cf4c40f3b4a7/e conomic-overview-germany-market-productivity-innovation-en-data.pdf Deutsche Bundesbank (12/2018) https://www.bundesbank.de/resource/blob/772350/e524e376b775aa3a0eadeafb8 e01a092/mL/2018-12-deutsche-auslandsposition-data.pdf Background information Germany's agriculture industry exported produce and farming machinery worth $95.9 billion in 2017 (+3,9%) Top manufacturing exporting industries in Germany are motor vehicles (MTR), machinery and equipment (MEQ) and chemicals and chemical products (CHM) Germany has relatively low service content in its exports - 51% -> the lowest within OECD Trade in Value Added (TiVA) The Trade in Value-Added measures flows related to the value that is added (labour compensation, taxes and profits) by a country in the production of any good or service that is exported. Trade growth The trade growth in Germany is 3.15% compared to a world growth of 3.50% Key points in German Trade • Foreign value-added content of gross exports decreased (20112016) from 23,2% to 20,3% • Germany has increased its competitiveness across all industries with the largest increase in ICT and Electronics and Other transport Equipment. • The largest domestic added value is at other transport equipment, basic metals and chemicals • Of the total value of Germany`s of intermediate goods and services in 2015 46,5% was then embodied in exports -> high levels of participation in global value chains Domestic value added in foreign final demand Foreign value-added content of gross exports (As a % of total gross exports) Key points in German Trade Despite the USA (8,1%) and China (7,3%) are Germany`s largest trading partners, Germany is more integrated in regional value chains with its European neighbors • The highest shares of Germany`s domestic value added embodied in manufactured imports into Germany came from the Czech Republic (12%), Austria (11.1%) and France (10%) • The trading partners with the highest shares of Germany`s value added in their exports of manufactures to Germany are Hungary (13,1%), the Czech Republic (11,4%) and Luxemburg (10,6%) Germany - domestic value-added content of manufactured imports, top 5 partners Germany`s most important Export and Import partners Export partners (% of total exports) USA France China Netherlands UK other countries Import partners (% of total imports) China Netherlands USA France Italy Other countries German trade (data for 2018) Trade as percentage of GDP - 88.67% Trade balance in current US$ - 243,227.00 million Exports of goods and services - 47.4% of GDP Imports of goods and services - 41.3% of GDP The total value of exports (2018) - 1,562,419 million The total value of imports (2018) - 1,292,726 million 4,411 products were exported to 230 countries and 4,499 products were imported from 225 countries International Investment Position Net IIP = country's external financial assets - liabilities Germany – second creditor country after Japan Financial openness= (external assets + liabilities)/GDP In Germany (2017)- 456%, whereas in 2000- 275% 500% 450% 400% 350% GDP 300% 250% 2000 200% 2017 150% 100% 50% 0% Financial openness External assets – 10,070,799 Mln of $ External liabilities – 7,921,380 Mln of $ Germany->the UK->the USA->Japan->China -> German FDI (inward) • According to UNCTAD, Germany ranks among the world`s leading countries for FDI with EUR 820 billion in inward FDI stocks (2018). • 59% of all inward FDI stocks in Germany originate from within EU + 9% from non-EU countries • 19% of FDI stocks originate from North America • 11% - from Asia • 70 000 foreign companies in Germany German FDI (outward) FDI net outflows - $159,083,000,000 (as of 2018) Conclusions Foreign value added content had decreased by 2,9% from 2011 to 2016 Despite that Germany shows high level of participation in regional and global value chains but regional chains within the EU are of greater importance for Germany Germany is second world`s creditor country, which constantly increases its FDI Germany`s financial openness makes up 456% in relation to GDP The largest parts (more than 50%) of German external assets and liabilities are connected with EU countries The most attractive spheres for FDI in Germany are ICT and software (20%), business and financial services (14,7%) and industrial machinery and equipment (10,6%)