Say hello to the third Macro Framework post! Our previous one was on China-Germany trade.
Top Exports/Imports in 2021
From the US to Germany, the top exports are cars; vaccines, toxins, and cultures; and gas turbines. In the other direction, the top export is the same, then it’s packaged medicaments. Germany’s top service export to the US is insurance services.
I took a peek at data from September 2023. From the US to Germany, the top exports were aircraft parts; cars; and vaccines, toxins, and cultures. And from Germany to the US, the top products were motor cars and parts, as well as pharmaceuticals.
In 2021, US exports to Germany were valued at $65.2 billion, while Germany’s exports to the US added up to $135.2 billion. Therefore, the US had a trade deficit of $70.1 billion with Germany.
Recent News: Pivoting from Russia
Unlike our previous posts on US-China and China-Germany, there isn’t a ton of new information that demands mentioning here. But the US is benefiting from Germany (and other countries) who have decided to lessen economic ties with Russia.
To provide context for Germany specifically: With the war and the 2022 Nord Stream pipeline sabotage, the country’s gas supply issues became heavily scrutinized. Germany’s heavy reliance on cheap Russian pipeline gas meant it didn’t have any liquefied natural gas import capacity at that point.
In June, Germany signed another long-term contract to replace Russian LNG with US LNG. It’s expected that more European companies would guarantee continued demand for American LNG exports.
The US has become the largest LNG exporter in the world.
Basic Info from 2022
The US has the world’s biggest economy with a GDP of $25.46 trillion, a population of around 333.2 million people, and a life expectancy of 77.5 years. The US has 131 million households (median real income of $74,580), with an average household size of 2.6 people.
Germany’s GDP is $4.07 trillion, and the country’s population is around 83.3 million with a life expectancy of 81.72 years. There are 40.9 million households with an average of 2 people per household. The median income is about 44,000 euros or around 48,500 dollars annually.
Check out the first MF post on US-China trade!