Germany economy

The German economy--the fifth-largest in the world in purchasing power parity (PPP) terms and Europe's largest--is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and have compelled the government to undertake structural reforms. The modernization and integration of the eastern German economy--where unemployment can exceed 20% in some municipalities--continues to be a costly long-term process, with total transfers from west to east amounting to roughly $3 trillion so far.

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GDP contracted by nearly 5% in 2009, which was the steepest dropoff in output since World War II. The turnaround has been swift: Germany’s export-dependent economy is expected to grow by 3.5% in 2010 and a further 2% in 2011, with exports to emerging markets playing an increasingly important role. The German labor market also showed a strong performance in 2010, with the unemployment rate dropping to 7.5%, its lowest level in 17 years. Economists attribute the decrease in unemployment to the extensive use of government-sponsored "short-time" (Kurzarbeit) work programs, as well as to structural reforms implemented under the government of former Chancellor Gerhard Schroeder. Thanks to stronger-than-expected tax revenues, Germany’s deficit will reach €50 billion (U.S. $68.5 billion) in 2010, or roughly 4% of GDP, significantly less than previously forecast. The European Union (EU) has given Germany until 2013 to get its consolidated budget deficit below 3% of GDP, and a new constitutional amendment limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. The government’s 4-year fiscal consolidation program worth approximately €80 billion (U.S. $109.6 billion) is intended to meet both targets. Positive economic trends make it likely that Germany may achieve its goals ahead of schedule.

GDP (2009 nom.): $3.339 trillion.
Annual growth rate: (2010 est.) 3.5%; (2009) -4.7%; (2008) 1.7%.
Per capita GDP (2009 nom.): $44,525.
Inflation rate (September 2010): 1.3%.
Unemployment rate (October 2010): 7.5%.
Agriculture (0.9% of GDP in 2010): Products--corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.
Industry (26.8% of GDP in 2010): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.
Trade (2009): Exports--$1.124 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets (2009)--France, Netherlands, U.S. Imports--$937 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--Netherlands, China, France.


Source:   http://www.traveldocs.com/de/economy.htm