Germany — a strong high-tech partner
Courtesy of the German Trade Office Taipei
October 3, 2011, 3:45 pm TWN
Germany is the economic powerhouse of Europe, a reliable partner and committed player in the global economy, even more so in a time when developments in some Euro-countries and the U.S. cause worries about future economic growth and stability.
The German economy was one of the first to recover from the financial crisis, and achieved 4.1 percent growth in GDP in 2010, a remarkable number for a mature economy. Germany not only outperformed the European Union (EU) average of 1.8 percent GDP growth in fiscal year 2010, but also performed better than Japan (3.9 percent) and the U.S. (2.9 percent). The economic growth is believed to continue at a rate of around 3 percent this year, despite the turbulences in the eurozone.
The growth drivers of the German economy are the machinery, automotive, chemical and other export-oriented industries. High-tech German products offer state-of-the-art solutions for many challenges like environmental production, security of energy supply, aging societies and mobility.
Based on an estimate from the “AHK Expertenindex,” a report published by the Association of German Chambers of Industry and Commerce (DIHK), the total exports will rise by 11 percent in 2011 and 9 percent in 2012 year-on-year, outpacing the 7.4-percent growth in global trade predicted by the IMF.
Since Taiwan is also heavily dependent on exports, it was especially affected by the 2008 crisis due to decreased demands from mainland China, the U.S. and Europe. However, like Germany, it was one of the first economies to recover and achieved a remarkable rise in GDP by 10.88 percent in 2010; the trading volume between Taiwan and Germany in 2010 also increased by 42.4 percent from the previous year.
Germany thus remained Taiwan's most important trading partner in Europe. This did not change during the first eight months of 2011, in which imports from Germany rose by 22.1 percent compared to the same period in 2010. Taiwan imported mainly machinery (23.3 percent), chemical products (15 percent), motor vehicles and parts thereof (13.9 percent), electrical machinery and equipment (11.3 percent) as well as measurement and control engineering services (7.1 percent) from Germany in 2010. Electronic components (49.4 percent), machinery (13.2 percent) and automotive parts (9.6 percent) last year made up the main export goods to Germany.