The U.S.-German Economic Relationship

The deep integration between Germany and the United States continues to generate economic growth for both countries helping secure a stable platform for recovery. Since the fall of the wall, our economic ties have rapidly expanded, with American investment in Germany increasing more than four times and German investment in the U.S. soaring to seven times its 1990 level. Together, German firms operating in the U.S. and American companies in Germany control over $1 trillion in corporate assets.

With the enormous size of two-way investment, more and more jobs in both of our countries depend on this relationship. The most recent figures show that 670,000 Americans, or one in every 200 employed in the private sector, now works for a German company. American firms in Germany employ nearly 800,000 Germans (one out of every 35 German private sector employees), and the multiplier effects of this employment support up to an estimated additional 2 million jobs for the German economy.

Bilateral trade fuels and supports these enormous investment underpinnings. Despite the economic crisis, the U.S. remains Germany’s number one export market outside the European Union (only trumped by France inside Europe). Germany is the U.S.’ number five export market, but number two within Europe (behind the UK). In 2009, the United States was the top export market for Berlin and ranks among the top five export markets for 12 of Germany’s 16 Länder.