US Imports From China Fall: Why is Germany Suffering?
Monday December 29, 2008
Germany has been the world’s largest merchandise exporter for the last five years, but due to the fall in Chinese exports to the US, Germany finds itself heading towards recession. The reason behind Germany’s fall from grace is in part due to its significant exports to China and other Asian countries. When the US economy was stronger and imports of Chinese manufactured goods were high, those products contained large numbers of German components.
Now Chinese manufacturers are seeing US orders falling, they have quickly halted imports from German companies. In September manufacturing orders in Germany fell for the first time since German Reunification in 1990. This has led to the German government to wonder if they should assist their economy in the same manner as the US, Japan and China.
Now Chinese manufacturers are seeing US orders falling, they have quickly halted imports from German companies. In September manufacturing orders in Germany fell for the first time since German Reunification in 1990. This has led to the German government to wonder if they should assist their economy in the same manner as the US, Japan and China.
Comments
This is true that countries around the world are related to each others. In the past, when the economy was in good condition, the U.S. used to blame China for the unbalance of the trade between them. At that moment, experts expressed that it was not China but all other “components” countries contributed to the trade unbalance. Now, the story proved that comment. I wish Germany can go through this recession safely. In fact, the worst is coming in my own opinion.
Since all of our economies are tied together, I think we will see a quicker rebound than if we were not globalized.
I agree with Paul, I think we haven’t seen the worst yet.