The US-German Economic Relationship in 2021. Achievements and expectations

Abstract

In 2021, the authorities of the Federal Republic of Germany and the United States confirmed their intentions to restore the transatlantic partnership. Further changes in the global market depend on the relationship between J. Biden`s administration and the new government coalition in Germany and Germany`s EU-partners. The high level of German-American economic interpenetration, confirmed by the results of the analysis, determines the agenda of political and economic cooperation between the two countries. In this context, their existing contradictions and their determination for mutual concessions represent particular importance. The German economy is especially sensitive to the protectionism of its main economic partners, the United States and the China. The country is interested in maintaining its competitiveness, which can push it to more active participation in the development of the US-China relations and attempts to strengthen its position in the EU in the implementation of the economic development strategy. The article analyzes bilateral investment activity, trade, expectations of national business in the territory of a partner country; highlighted the main economic contradictions with the Federal Republic of Germany during the presidency of D. Trump and J. Biden. The aftermath of the pandemic has negatively affected bilateral trade. In the meantime businesses of both countries are planning expantion and not expected to quit the market, which suggests a return to the positive trend in trade in the mid- term.