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The United States of America is the largest and most important export market for German companies. If there are disruptions in bilateral trade between the two nations, the effects are clearly felt here in Germany. This was demonstrated, for example, by the initial failure of negotiations on the Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the USA, which has been on hold since 2017 and has not entered into force. In the meantime, these tensions have been somewhat defused again and bilateral investment flows are gaining momentum. 

The USA is the leading source of non-European foreign investment in Germany. For example, US direct investment in Germany totaled 148 billion US dollars in 2019, up 8% from 2018. On the other hand, the stock of direct investment from Germany in the U.S. amounted to $373 billion, an increase of 14% compared to 2018. Moreover, almost 30% of all German direct investment went to the US, making it the most popular investment destination for German companies. In turn, about 10% of foreign direct investment from the US goes to Germany. 

However, the USA is not synonymous with the Americas. South America also offers a wide range of economic opportunities, even though this region is a terrain fraught with risks for German companies. Venezuela is just one example of how political crises can have a massive impact on the economic well-being of countries and thwart investment efforts. Affected companies should therefore take active countermeasures with targeted advice in order to minimize economic risks. At KPMG, you will find technical experts who have the in-depth knowledge and experience to support you in making your business in North and South America crisis-proof and worthwhile.

Even with geopolitical issues, bilateral partnerships and foreign investments can create new opportunities. We can assist you with a wide range of challenges from managing climate risks and protecting against cybercrime to general risk mitigation and innovation development.

Our survey of German companies in the US, the German-American Business Outlook 2021, provides more information on bilateral economic relations, future expectations and trends of companies in this economic region. For example, German companies employ around 860,000 people in the US, generated over 530 billion dollars in revenue in 2018, and have now invested over 520 billion dollars there.