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to substantial growth rates in the years before

machinery and automobiles. A recent study

the 2008-2009 global recession. Germany’s

by the Munich based Ifo Institute, one of

exports, which make up a substantial share of

Germany’s

its GDP, where not hampered by the strong

concluded that by 2011 German companies

Euro because as of 2008 sixty-four percent of

will for the fi rst time export more goods to

German exports went to other EU-countries

China than to the United States. German

(with France being the largest single importer

luxury cars enjoy the greatest popularity

of German goods and services).

among the newly rich in Asia where car

most

infl uential

think

tanks,

Exports also played a major role in

salesmen describe the demand as “explosive”.

Germany’s rapid and full recovery from its

In October, the members of the board of

worst recession since the Second World

trade of the rapidly developing Indian town

War. Having experienced a massive slump

of Aurangabad jointly placed a single order of

Exports also played a major role in Germany’s rapid and full recovery from its worst recession since the Second World War. in 2009 when the country’s GDP fell almost

150 Mercedes-Benz cars as a publicity stunt

5%, the economy was already growing again

to gain attention for their little known town.

at a rate of 2.2% in the second quarter of

In early November, BMW announced that it

2010 (the fastest quarterly growth since the

had sold almost 122,000 cars in China since

reunifi cation of the country 20 years ago). The

the beginning of the year, almost doubling the

European Commission expects Germany’s

sales of 2009.

growth rate for the whole year to exceed

With these trends expected to continue

3.4%. By comparison, its forecast for the euro

in the next decade, Germany seems to have a

zone is a mere 1.7%. According to the German

bright economic future lying ahead. Of course,

Federal Statistics Offi ce, German exports

there are some significant challenges to

grew by 3% in September and unemployment

overcome. One is Germany’s increased reliance

(at 3.15 million in September) was already

on markets such as China and Russia, which are

lower than before the beginning of the crisis

prone to interference by their unpredictable

in the fall of 2008. While the unemployment

governments. The recent row over China’s

rate

at

curbing of its rare earth exports, which are

9.6 percent [October 2010] and hasbeen

vital for many of Germany’s key industries,

essentially unchanged since May” according

is illustrative. Another even more daunting

to the U.S. Bureau of Labor Statistics, German

problem arises from Germany’s aging society.

companies are now publicly worrying about

A recent OECD study found that in a decade

labor shortages.

from now the number of people leaving the

in

the

United

States

“remained

One crucial factor contributing to the rapid rise in German exports is the equally rapid recovery of the emerging markets from the global recession, which has led to a

German labor market will be up to 75% higher than the number of those entering. Nevertheless, for the time being President Obama is right. Germany is moving. iBR

strong surge in demand for German produced

FA L L 2 0 1 0

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39

11/27/2010 3:13:14 PM

Profile for Daniel Hellwig

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

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