Belgium, France, Italy, and Sweden tend to have higher export-to-GDP ratios than the United States primarily because they are smaller, more open economies that rely heavily on international trade. Their geographic location in Europe facilitates trade within the EU, which reduces barriers and increases export activity. These countries often specialize in products and industries that are integrated into global supply chains, necessitating cross-border trade of intermediate and finished goods. In contrast, the United States is a large economy with a vast internal market capable of supporting a substantial division of labor and production domestically, reducing its reliance on exports as a share of GDP. Additionally, the U.S. geographic size and economic scale allow it to have more internalized economic activity, while smaller European countries depend more on international markets to sustain their economic output. Key factors for the higher export-to-GDP ratio in these European countries include:
- Smaller domestic market size requiring access to external markets.
- Central geographic location in Europe facilitating trade.
- Membership in the European Union, which reduces trade barriers within the bloc.
- Economies structured around industries and supply chains that are globally integrated.
- Extensive developed transport networks and ports that support export activities, such as Belgium’s Port of Antwerp.
Meanwhile, the U.S. export-to-GDP ratio is lower due to the large domestic consumer base and production ecosystem, which diminishes the relative size of exports in its overall GDP.