Germany

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Germany - In Short.

Overview of Germany

As Europe’s largest economy and second most populous nation (after Russia), Germany is a key member of the continent’s economic, political, and defense organizations. European power struggles immersed Germany in two devastating world wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. With the advent of the Cold War, two German states were formed in 1949: the western Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key western economic and security organizations, the EC (now the EU) and NATO, while the communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German reunification in 1990. Since then, Germany has expended considerable funds to bring eastern productivity and wages up to western standards. In January 1999, Germany and 10 other EU countries introduced a common European exchange currency, the euro.

Value
Country Full Name
Germany
Country Code
DEU
Region
Europe & Central Asia
Income Group
High income
Currency Unit
GDP
3.85E+12
Population
83160871
Land Area
349380
Net National Income Per Capita
38456.17079
GDP per Capita (PPP)
54844.54597

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Germany - Economic

Economy of Germany

The German economy – the fifth largest economy in the world in PPP terms and Europe’s largest – is a leading exporter of machinery, vehicles, chemicals, and household equipment. Germany benefits from a highly skilled labor force, but, like its Western European neighbors, faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country’s social welfare system and necessitate structural reforms.Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong economic growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession – the deepest since World War II. The German Government introduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) in January 2017.Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL’s second term increased Germany’s total budget deficit – including federal, state, and municipal – to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2017 Germany reached a budget surplus of 0.7%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country’s 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Domestic consumption, investment, and exports are likely to drive German GDP growth in 2018, and the country’s budget and trade surpluses are likely to remain high.

Unemployment Rate

Inflation Rate

Germany - GDP Composition

GDP Composiiton & Value Added of Germany

Last Updated: Jan, 2021, Updated For 2020.

Germany - GDP, Value Added

Demographics of Germany

most populous country in Europe; a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations, particularly in the far western part of the industrial state of North Rhine-Westphalia

Geographic Location

Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark

Races

German 86.3%, Turkish 1.8%, Polish 1%, Syrian 1%, Romanian 1%, other/stateless/unspecified 8.9% (2020 est.)note:  data represent population by nationality

Languages

German (official); note - Danish, Frisian, Sorbian, and Romani are official minority languages; Low German, Danish, North Frisian, Sater Frisian, Lower Sorbian, Upper Sorbian, and Romani are recognized as regional languages under the European Charter for Regional or Minority Languagesmajor-language

Religion

Roman Catholic 26.7%, Protestant 24.3%, Muslim 3.5%, other 4.8%, none 40.7% (2020 est.)

Dependency & Expectancy of Germany

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of Germany

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB (nonregional member), AfDB (nonregional member), Arctic Council (observer), Australia Group, BIS, BSEC (observer), CBSS, CD, CDB, CE, CERN, EAPC, EBRD, ECB, EIB, EITI (implementing country), EMU, ESA, EU, FAO, FATF, G-5, G-7, G-8, G-10, G-20, IADB, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IGAD (partners), IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MINUSMA, NATO, NEA, NSG, OAS (observer), OECD, OPCW, OSCE, Pacific Alliance (observer), Paris Club, PCA, Schengen Convention, SELEC (observer), SICA (observer), UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNMISS, UNRWA, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

Import of Germany

Export of Germany

Import Destination

Export Destination