Germany, the European economic powerhouse, was the world's leading exporter again in 2007, staving off a challenge from fast-growing China despite the impact of a strong euro on its competitiveness.
"Made in Germany" is still a strong selling point, and exporters forestalled a Chinese surge to claim the top spot for the fifth straight year with a total value of 969 billion euros (1.4 trillion dollars), a gain of 8.5 percent from 2006, official figures showed. China sold 1.22 trillion dollars' worth of goods abroad, according to the Chinese trade ministry's Internet site.
The World Trade Organisation (WTO) forecast last year that China would surpass Germany in 2009. Among well-known German exports, automobiles lead the way, with 4.3 million vehicles sold abroad under nameplates that range from Volkswagen, BMW and Mercedes to Ford and General Motors' Opel brand.
Another German strength is machine tools, which racked up foreign sales of 138 billion euros last year. Machines used to make other machines were particularly sought after in eastern Europe, Russia and oil-exporting countries.
Especially in southern and south-western Germany, small- and medium-sized enterprises that are often family owned have managed to carve out strong positions in niche markets. Examples include G.W. Barth, the world leader in machines used to make chocolate, and Baader-Gruppe, which produces machines that process fish.
"In the long term, however, more than 1.3 billion Chinese will outperform 82 million Germans in terms of exports," UniCredit economist Alexander KKoch wrote in a research note The United Nations Development Program has said that will happen next year. "But this is nothing to worry about," Koch continued.
Though it is nice to be number one, it is more important for Germany that foreign trade continues to provide a solid pillar for economic growth and that the balance of trade remain in the country's favour. As for the former, "foreign trade is not automatically the economic engine," the head of the trade federation BGA said recently, especially when prospects for global growth grow darker. But exports still have some good days ahead of them.
"The expansion in the export sector should also continue in 2008 - noticeably softer than in previous years, but still at a solid pace," Koch said. In terms of the trade surplus, Berlin can be pleased with an increase of 40 billion euros last year to 199 billion euros.
That compared with a chronic US trade deficit, which stood at 63.1 billion dollars (43.6 billion euros) in November, and the record French deficit of 39 billion euros announced this week. Manfred Wittenstein, president of the federation of German machine tool manufacturers, said a few days ago: "Even in France and Italy we are showing growth of more than 10 percent, to the detriment of local rivals."