China To Unseat Germany As Exports Champion In 2008

China's exports are growing 20% per year.

According to a survey published by the DIHK German federation of chambers of commerce released on July 26, China will dethrone Germany as the world's leading export nation next year. China is expected to overtake Germany as both pass the one-trillion-euro (US$1.4 trillion) mark in export volume.

"Germany will lose its title as world exports champion to China in 2008 because Chinese exports are growing even faster each year, by about 20%," DIHK chief economist Axel Nitschke said. Nitschke added that the strong euro had made German products more expensive and thus hurt sales abroad just as the slackening U.S. economy is importing less.

China's overall economy grew so rapidly in the first half of 2007 that it is likely to overtake Germany as the world's third-largest by the end of this year. Recent figures show that China expanded even faster than originally thought last year -- at 11.1% instead of 10% -- to produce an economy worth 21.09 trillion yuan (US$2.65 trillion.)

The revision puts China within striking distance of Europe's largest economy, having overtaken Britain and France in 2005 for fourth spot on the global rankings behind Germany, Japan and the United States.

Copyright Agence France-Presse, 2007

TAGS: Trade
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