Germany is World’s 3rd Largest Economy – Explained with Data Analysis

07 March 2024

Germany, the powerhouse of Europe, is renowned for its technological advancement and strong economy. Its strategic location in the heart of Europe with a strong industrial base showcases Germany as an important player in international trade. Recently, Germany became the world’s 3rd largest economy by surpassing Japan, and serving as the platform for innovation, manufacturing, and exports, driving global trade and influencing economic trends worldwide. 

Despite global challenges such as the pandemic, the Russia-Ukraine conflict, Israel-Hamas issues, Red Sea disruptions, and the shift in the international market from a free economy to protectionist-based policies, Germany’s strong and constructive economic policies defied all institutional predictions of a possible decline in the growth rate and the famous tag of ‘Sick Man of Europe’.

Explore Germany’s impressive global export performance in terms of monetary value with the help of the table. Germany's exports to the world over the last five years, from 2019 to 2023, the highest ever export in terms of value was registered in 2023 with USD 1689 billion. The export growth rate was disrupted in 2020, with a marginal shortfall in total trade value from USD 1486 billion in 2019 to USD 1379 billion in 2020. The major reason for this downfall was attributed to the global slowdown due to COVID-19.

***Total Trade Value per Billion USD

If thoroughly going through the table to categorise the exports by country, then China and Poland are the only major trading partners of Germany with increasing exports even during the Covid period. Interestingly, Germany’s exports to China are continuously on a downward trend after 2021, whereas exports to other countries increased year-on-year. The USA, France, the Netherlands, and China are the only countries with more than USD 100 billion imports from Germany.

 

***Total Trade Value per Billion USD

 

Germany Export to Africa, Asia and Europe

How does Europe's powerhouse, Germany, control the world with seamless connectivity of supply chains, innovative products, and others with its exports? Let’s answer this by exploring Germany's export presence based on continents.

From the overall trade data with total value, Europe emerged as the largest export destination for Germany’s exports, with more than USD 974 billion in 2019, which increased to USD 1106 billion in 2023. On the other hand, Asia and Africa are becoming the most suitable partners for Germany’s exports, exports to Asia increased from USD 269 billion in 2019 to USD 291 billion in 2023, whereas exports to Africa increased from USD 26 billion to USD 31 billion in the same year

***Total Trade Value per Billion USD

 

Germany’s Top Most Export Destination in Asia

As Germany becomes the powerhouse of Europe, in line with this, Asia is emerging as the growth engine of the world, including China, Japan, and India, the world’s largest economies. Let’s decode from the table how exporters from Germany seized untapped economic opportunities in Asia with major trading partners.

 

In Asia, China is the only country whose imports from Germany crossed the USD 100 billion mark, despite the geopolitical challenges. Exports to Türkiye and India increased over the years but remained constant with Japan and South Korea, with a negligible increase in exports from Germany.

***Total Trade Value per Billion USD

Germany set an example for countries and businesses worldwide by becoming the world’s 3^rd largest economy, surpassing Japan despite geopolitical challenges. Its constructive economic policies and visionary steps drive international trade and its importance in the world economy.