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flag Germany Germany: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Germany is Europe's primary economy. Over the last few years, its performance has not been dynamic due to the country's vulnerability to outside shocks, domestic structural problems and the permanent difficulties of integrating the formerly communist eastern part. Strongly hit by the international financial crisis, Germany went into recession in 2009 and then recovered growth in 2010 (3.3%) under the combined effects of the stimulus plan and the resumption of international trade and investment. Some believe that the pre-crisis level of activity will be reached as soon as at the end of 2011.

Thanks to the good economic situation, the government’s priority is now to deal with the budget deficit, which soared during the crisis and to implement measures favoring investment and new technologies, in order to diversify the economy and no longer depend on exports.

Despite the gravity of the recession, Germany was able to contain its unemployment rates around 8%, thanks to the adopted measures. The integration of the former Eastern Germany, where the unemployment rate remains very high, nevertheless continues to pose problems.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 3,307.203,286.453,628.623,707.793,758.61
GDP (Constant Prices, Annual % Change) -5.13.6e2.71.31.5
GDP per Capita (USD) 40,44740,274e44,556e45,61946,337
General Government Balance (in % of GDP) -1.1-2.3-1.4e-0.9-0.6
General Government Gross Debt (in % of GDP) 74.184.0e82.681.981.0
Inflation Rate (%) 0.21.2e2.21.31.6
Unemployment Rate (% of the Labor Force) 7.77.16.06.26.4
Current Account (billions USD) 186.28187.23e182.82182.41179.61
Current Account (in % of GDP) 5.65.7e5.0e4.8-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The German agricultural sector contributes about 1% of the GDP and employs about 2,5% of the active population. The sector has greatly benefitted from State subsidies. Main agricultural products are milk, pork and livestock farming, sugar beet and cereals. Consumers prefer organic agriculture. The country is going through a process of deindustrialization of the food sector. 

The contribution of the industrial sector to the GDP has dropped from 51% in 1970 to about 29% today. However, the German economy still has some specialized sectors such as mechanical engineering, electric and electronic equipment, automotive and chemical products. The automotive industry is one of the country's largest industrial sectors, and is the world's 3rd exporter of cars. Nevertheless, the crisis has affected German industry, especially the automotive sector as well as equipment, with a decrease in orders and the implementation of partial unemployment plans.

The tertiary sector contributes about 70% to the GDP. The German economic model relies mainly on a dense network of SMEs; there are more than 3 million of them employing 70% of the salaried workers.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 1.7 28.7 69.5
Value Added (in % of GDP) 0.8 26.5 72.7
Value Added (Annual % Change) 8.9 -14.9 -1.4

Source: World Bank - Last Available Data.

 
 
 
 
Learn more about Market Analysis about Germany on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
71.8/100
Position:
Mostly free
World Rank:
23/179
Regional Rank:
12/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Trade represents more than 80% of Germany’s GDP; with exports representing about 40% of GDP, Germany is a leader in exports (only recently caught up with by China).

The global recession which has lead to a decrease in exports reduced the positive trade balance of the country, however since the beginning of the recovery, trade balance shows comfortable surplus and this trend should continue in the coming years.

The whole of the European Union is its primary trade partner: around 60% of German exports and 60% of its imports are done with the EU. China and the U.S. are the other two main partners.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 906,6841,054,9801,185,070926,3471,067,107
Exports of Goods (million USD) 1,108,1071,321,2141,446,1721,120,0401,268,840
Imports of Services (million USD) 224,081258,682288,401252,543256,289
Exports of Services (million USD) 187,830221,929255,789225,756229,861
Imports of Goods and Services (Annual % Change) 11.95.03.3-9.4-
Exports of Goods and Services (Annual % Change) 12.57.8---
Imports of Goods and Services (in % of GDP) 39.739.841.035.9-
Exports of Goods and Services (in % of GDP) 45.446.947.540.8-
Trade Balance (million USD) 198,053270,749263,029188,505204,717
Trade Balance (Including Service) (million USD) 162,022234,178226,182163,969179,516
Foreign Trade (in % of GDP) 85.086.788.576.7-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
France 9.5%
United States 6.8%
Netherlands 6.6%
United Kingdom 6.2%
Italy 6.1%
See More Countries 64.8%
Main Suppliers
(% of Imports)
2010
China 9.5%
Netherlands 8.5%
France 7.7%
United States 5.6%
Italy 5.4%
See More Countries 63.3%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 10.1%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.5%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.4%
Powered aircraft "e.g. helicopters and aeroplanes"...Powered aircraft "e.g. helicopters and aeroplanes"; spacecraft, incl. satellites, and suborbital and spacecraft launch vehicles 1.8%
Human blood; animal blood prepared for therapeutic...Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excl. yeasts) and similar products 1.2%
See More Products 80.0%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 4.9%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.3%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.1%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.4%
See More Products 83.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of the Economy and Technology
Ministry of Cooperation and Development
Ministry of Food, Agriculture and Consumer Protection
Ministry of Transport, Building and Urban Affairs
Ministry of Culture and Research
Statistical Office
Federal Statistical Office
Central Bank
Deutsche Bundesbank
Stock Exchange
Deutsche Börse Group
Search Engines
Yahoo!
Google
Abacho
Alles Klar
Altavista
Apollo 7
Bellnet
Lostse
Dino
Fireball
Flix
Klug Suchen
Lycos
Metager
NetGuide
Rex
Sharelook
Suchmaschine
Web.de
Economic Portals
German business portal

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Political Outline

Executive Power
The Head of government is the Chancellor, who is elected by absolute majority in the Federal Assembly for a four year term.The Chancellor holds the executive power, which includes implementing the law and managing the everyday business of the country. The Federal Ministers (Council of Ministers) are appointed by the president on the recommendation of the Chancellor.

The Head of State is the President. He is elected for a five year term by the Federal Convention (which includes the members of the Federal Assembly and an equal number of delegates elected by the provincial legislatures). The role of the president is mainly ceremonial.

Legislative Power
The legislative power in Germany is bicameral. The parliament is made up of two houses: the Federal Assembly (the lower house), with 613 seats, whose members are elected by universal suffrage combining proportional and direct representation, for a four year term. And the Federal Council (upper house), with 69 seats, whose members are delegates from the 16 provinces of the country for a 4 year term. There are no elections for the Federal Council. Its composition is determined by that of the provincial governments. The government depends directly or indirectly on the support of parliament, generally expressed by a vote of confidence. The Chancellor cannot dissolve parliament directly, but he can recommend its dissolution to the president if there is a vote of no confidence within the Federal Assembly. Legislative power belongs both to the government and the parliament. German citizens enjoy considerable political rights.
Main Political Parties
- Christian Democratic Union (CDU): conservatives
- Christian-Social Union (CSU): conservatives
- Social Democratic Party (SPD): social democrats
- Free Democratic Party (FDP): liberals
- Bündnis90/die Gruenen: left/green
Current Political Leaders
President :  Christian WULLF (CDU) since 2010.
Chancellor : Angela MERKEL (since November 2005) CDU, head of a coalition backed by the CSU and the SPD.
Next Election Dates
Chancellor: November 2013
 

Indicator of Freedom of the Press

World Rank:
17/178
Evolution:
1 place up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012