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The industrial powerhouse accounts for one in every five dollars generated in the European Union, and the country's export sector makes up a similar portion of regional trade.
This position of strength is built on a highly efficient manufacturing sector that feeds a diversified trade network. And while the country will be careful in negotiating the uncertain future of the Eurozone and international trade agreements, its dominance in Europe is unlikely to wane.
Looking ahead, Germany's cyclical export sector could be a powerful way to play renewed momentum in global growth. A heavy weight toward capital and consumer goods exports means that German trade tends to move with the world economy.
Source: Statista
Gaining from global growth
Germany is home to some of the world's best-known brands, including Bayer, Siemens, and BMW. It's also the headquarters of lesser-known industrial giants BASF, Aurubis, and Henkel.
These companies lead a diverse manufacturing sector that ships automobiles ($246 billion in 2015), machinery ($185 billion), chemical products ($118 billion), and electronics ($106 billion) to the world.1
The cyclical nature of most of Germany's major exports mean the economy is well placed to leverage growth in different regions. The country's top five export partners are located in North America, Europe, and Asia.
And while there is a natural lean toward Europe, no single country accounts for more than 10% of exports, according to World Bank data. This spread of partners is valuable in sustaining stable trade.
Given this strong profile, investors looking to take a position on global growth might consider taking a closer look at the German economy.
If you're looking to access the German market, consider the iShares MSCI Germany ETF (EWG), or broaden your search to other countries.
1. Data from the Federal Statistical Office of Germany. Euros converted to USD at prevailing cross rate of $1.0859 at 31 December 2015.
EXPLORE: Research other countries in the Worldviews series
INFOGRAPHIC: Everything you need to know about the German economy
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