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Poland, Torun
GERMANY
COUNTRIES A-Z
Germany Economy
Country Name: Federal Republic of Germany
Capital City: Berlin
Population: 82,422,299 (2006)
Population Growth: -0.02% (2006)
Currency: Euro (EUR)
Languages: German
Area: 357,021 sq km
Inflation Rate: 1.7% (2006 est.)
Unemployment Rate: 11.7% (2005)
Domain extension: .de
ECONOMIC DETAILS OF GERMANY
ECONOMY OVERVIEW
Germany's affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2006 with 2.2% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth has led to a considerable fall in unemployment to about 7% at the end of 2006. Among the most important reasons for Germany's high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006 reduced Germany's budget deficit to within the EU's 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could help Germany meet the long-term challenges of European economic integration and globalization.
Germany's affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2006 with 2.2% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth has led to a considerable fall in unemployment to about 7% at the end of 2006. Among the most important reasons for Germany's high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006 reduced Germany's budget deficit to within the EU's 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could help Germany meet the long-term challenges of European economic integration and globalization.
GDP - purchasing power parity:
$2.63 trillion (2006 est.)
GDP - real growth rate:
2.7% (2006 est.)
GDP - per capita:
$31,900 (2006 est.)
GDP - by sector (agriculture):
agriculture: 0.9%
GDP - by sector (industry):
industry: 29.1%
GDP - by sector (services):
services: 70% (2006 est.)
Export Partners:
France 9.7%, US 8.6%, UK 7.3%, Italy 6.7%, Netherlands 6.2%, Belgium 5.5%, Austria 5.5%, Spain 4.7% (2006)
Import Partners:
Netherlands 11.7%, France 8.7%, Belgium 7.6%, UK 5.9%, China 5.9%, Italy 5.5%, US 5.1%, Austria 4.3%, Russia 4% (2006)
Export Commodities:
machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles
Import Commodities:
machinery, vehicles, chemicals, foodstuffs, textiles, metals
Exports Volume:
$1.133 trillion f.o.b. (2006 est.)
Imports Volume:
$916.4 billion f.o.b. (2006 est.)
Labour Force:
43.66 million (2006 est.)
Unemployment Rate:
0.071
Population below poverty line:
11% (2001 est.)
Inflation Rate:
1.7% (2006 est.)
Investment (gross fixed):
17.3% of GDP (2006 est.)
Public Debt:
66.8% of GDP (2006 est.)
Agriculture Products:
potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultry
Industries:
among the world's largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles
Industrial Production Growth Rate:
4.4% (2006 est.)
Electricity - production:
566.9 billion kWh (2004)
Electricity - consumption:
524.6 billion kWh (2004)
Electricity - exports:
50.8 billion kWh (2004)
Electricity - imports:
48.2 billion kWh (2004)
Oil - production:
167,400 bbl/day (2004)
Oil - consumption:
2.65 million bbl/day (2004)
Oil - exports:
12,990 bbl/day (2003)
Oil - imports:
2.135 million bbl/day (2003)
Natural gas - production:
19.9 billion cu m (2005 est.)
Natural gas - consumption:
Natural gas - exports:
Natural gas - imports:
Current Account Balance:
$134.8 billion (2006 est.)
Currency Code:
euro (EUR)