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Germany a large investor, employer in US economy
[WASHINGTON] A brewing diplomatic crisis between the United States and Germany has its roots in President Donald Trump's frequent criticism of the large US trade deficit with the European economic powerhouse.
Here are some key facts about the economic relationship between the two countries:
The US trade deficit in goods and services with Germany in 2016 fell to US$67.8 billion, due to a 0.7 per cent increase in exports to US$80.4 billion, and a 5.7 per cent drop in imports, which totalled US$148.1 billion, according to government data.
That ranks as the second largest deficit, behind China (US$310 billion), and followed by Mexico (US$62 billion), and Japan (US$56 billion).
Unlike those countries, however, where the US has a surplus in services, it has a deficit with Germany in both goods and services, the latter amounting to US$2.3 billion last year.
The United States is Germany's most important export market, but Germany ranks as the fifth biggest source of US imports, behind China (US$480 billion), Mexico (US$324 billion), Canada (US$313.5 billion) and Japan (US$165 billion).
Capital goods make up nearly US$40 billion of products imported from Germany, while autos, parts and engines amounted to US$32 billion, followed by consumer goods at nearly US$20 billion.
Germany is the sixth largest market for US exports, behind Canada (US$322 billion), Mexico (US$262 billion), China (US$170 billion), UK (US$121 billion) and Japan (US$109 billion).
The largest component of US exports to Germany was "other goods and services," which totalled just under US$28 billion last year, followed by non-auto capital goods at US$21 billion.
In 2015, German firms invested US$255.5 billion in the United states, an increase of nearly 14 per cent over the previous year, ranking as the seventh biggest foreign investor. The UK was first with US$484 billion followed by Japan with US$484 billion.
German companies are the third largest foreign employer in the United States, with over 670,000 workers, nearly half of which are employed in manufacturing.