THE ECONOMY OF GERMANY

One of the largest national economies in Europe is Germany, the country came fifth by GDP IN 2008, and the fourth largest by national GDP in the world. Germany is also the third largest exporter in the world with “$1.408 trillion exported in 2011.”Their exports account for more than one-third of national output. They are the leading exporter in machinery, household equipment and vehicles. Low fertility rates and declining net immigration are increasing pressure on Germany’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 growth in 2006 and 2007 and falling unemployment.

         These advances, as well as a government subsidized, reduced working hour scheme, helped to explain the relatively modest increase in unemployment during the 2008-2009 recession - the deepest since World War II - and its decrease to 6.0% in 2011. GDP contracted 5.1% in 2009 but grew by 3.6% in 2010, and 2.7% in 2011.Germany is relatively poor in raw materials only lignite and potash salt are available in economically significant quantities. Their oil, natural gas and other resources are mostly imported from other countries. They import about two thirds of their energy. The service sector of Germany contributes around 70% of total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods.

        Germany is known to be the leading producer of wind turbines and solar power technology in the world. The annual largest international congresses and trade fairs are held in several German cities such as Hanover, Frankfurt, and Berlin. Combination of service-oriented manufacturing R&D spending, links between industry and academia, international cooperation and SME contribute to the overall competitiveness of the economy of Germany.

      The country had a labor force of “43.67 million”. 1.6% was employed in agriculture, 24.6% were employed in industry, and 73.8% were employed in services. In 2010, 15.5% of the populations were however below the poverty line. Of the world's 500 largest stock market listed companies measured by revenue 37 are headquartered in Germany. Labor relations are sound, and employers and workers have worked cooperatively to adjust wages and work hours in response to the changing economic environment. Monetary stability is well maintained.

 

Work cited sources

http://en.wikipedia.org/wiki/Economy_of_Germany

http://www.heritage.org/index/country/germany