Economic Relations Between the U.S. Economic Relations Between the U.S. and Germanyand Germany

Theme: Economic Issues in German Theme: Economic Issues in German Speaking CountriesSpeaking Countries

By: Juliane Baldeweg-RauBy: Juliane Baldeweg-Rau

Economic RelationsEconomic Relations

Since the Cold War the United States worked closely with Since the Cold War the United States worked closely with Germany in order to improve its economy.Germany in order to improve its economy.

Both nations have acted with similar economic interests.Both nations have acted with similar economic interests. Their economic relations are strong because they have two Their economic relations are strong because they have two

societies with much in common.societies with much in common. In terms of GDP America ranks first and Germany is fourth.In terms of GDP America ranks first and Germany is fourth. German relations with the U.S. weakened since the Iraq War German relations with the U.S. weakened since the Iraq War

began in 2003began in 2003

This image shows the ranks of 30 countries based on GDP

Economic RelationsEconomic Relations

Economic Relations between the U.S. and Germany are mostly good.Economic Relations between the U.S. and Germany are mostly good. The Transatlantic Economic Partnership between the USA and the The Transatlantic Economic Partnership between the USA and the

EU was launched in 2007 and it opened up additional opportunities.EU was launched in 2007 and it opened up additional opportunities. The US is Germany’s principal trading partner outside the EU and The US is Germany’s principal trading partner outside the EU and

Germany is the US’s most important trading partner in Europe.Germany is the US’s most important trading partner in Europe. In terms of the total volume of US bilateral trade (imports and In terms of the total volume of US bilateral trade (imports and

exports), Germany remains in fifth place, behind Canada, China, exports), Germany remains in fifth place, behind Canada, China, Mexico and Japan.Mexico and Japan.

Currently, the U.S. Is applying pressure on Germany and the EU to Currently, the U.S. Is applying pressure on Germany and the EU to increase the importation of US products because of their diminishing increase the importation of US products because of their diminishing power as a result of economic weakness. power as a result of economic weakness.

(Figures from the US Department of Commerce, Bureau of Economic Analysis)

2007 2008 2009 2010

US exports to Germany (USD billion)

49.4 54.5 43.3 48.2

US imports from Germany (USD billion)

94.1 97.4 71.4 82.7

Economic RelationsEconomic Relations

Germany and the United States of America are important to each Germany and the United States of America are important to each other for investment destinations.other for investment destinations.

At the end of 2010, bilateral investment was worth USD 317 At the end of 2010, bilateral investment was worth USD 317 billion, German direct investment in the US amounting to USD 212 billion, German direct investment in the US amounting to USD 212 billion and US direct investment in Germany USD 105 billion.billion and US direct investment in Germany USD 105 billion.

Germany is the fifth largest foreign investor in the US and ranks Germany is the fifth largest foreign investor in the US and ranks eleventh as a destination for US direct foreign investment eleventh as a destination for US direct foreign investment

German companies employ over 800,000 people in the United German companies employ over 800,000 people in the United States and US companies have almost the same amount of States and US companies have almost the same amount of employees in Germany.employees in Germany.

Germans are the third largest foreign employers in America and the Germans are the third largest foreign employers in America and the US is the largest inter-continental foreign employers in Germany.US is the largest inter-continental foreign employers in Germany.

2007 2008 2009 2010

German direct investment in US (USD billion)

213.1 201.4 218.1 212.9

US direct investment in Germany (USD billion)

100.6 108.2 116.8 105.8

(Figures from the US Department of Commerce, Bureau of Economic Analysis)

QuizQuiz1. Based on GDP what is Germany's rank?1. Based on GDP what is Germany's rank?

a. firsta. first

b. secondb. second

c. thirdc. third

d. fourthd. fourth

2. True or False2. True or False

Economic relations between Germany and the United States are Economic relations between Germany and the United States are bad. bad.

AnswersAnswers

1. D1. D

2. False2. False

Works CitedWorks Cited

http://www.bbgerman.com/german-relations-with-the-us.htmlhttp://www.bbgerman.com/german-relations-with-the-us.html

http://www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01http://www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/UsaVereinigteStaaten_node.html-Nodes/UsaVereinigteStaaten_node.html

http://www.german-foreign-policy.com/en/fulltext/57997http://www.german-foreign-policy.com/en/fulltext/57997