Economy Of Ireland

Ireland is a small, modern, trade-dependent economy. Ireland was among the initial group of 12 EU nations that began circulating the euro on 1 January 2002. GDP growth averaged 6% in 1995-2007, but economic activity has dropped sharply since the onset of the world financial crisis, with GDP falling by over 3% in 2008, nearly 8% in 2009, and 1% in 2010. Ireland entered into a recession in 2008 for the first time in more than a decade, with the subsequent collapse of its domestic property and construction markets. Property prices rose more rapidly in Ireland in the decade up to 2007 than in any other developed economy. Since their 2007 peak, average house prices have fallen 50%. In the wake of the collapse of the construction sector and the downturn in consumer spending and business investment, the export sector, dominated by foreign multinationals, has become a key component of Ireland's economy. Agriculture, once the most important sector, is now dwarfed by industry and services. In 2008 the COWEN government moved to guarantee all bank deposits, recapitalize the banking system, and establish partly-public venture capital funds in response to the country's economic downturn. In 2009, in continued efforts to stabilize the banking sector, the Irish Government established the National Asset Management Agency (NAMA) to acquire problem commercial property and development loans from Irish banks. Faced with sharply reduced revenues and a burgeoning budget deficit, the Irish Government introduced the first in a series of draconian budgets in 2009. In addition to across-the-board cuts in spending, the 2009 budget included wage reductions for all public servants. These measures were not sufficient. In 2010, the budget deficit reached 32.4% of GDP - the world's largest deficit, as a percentage of GDP - because of additional government support for the banking sector. In late 2010, the COWEN Government agreed to a $112 billion loan package from the EU and IMF to help Dublin further increase the capitalization of its banking sector and avoid defaulting on its sovereign debt. The government also initiated a four-year austerity plan to cut an additional $20 billion from its budget. A return to modest growth is expected in 2011.

GDP (purchasing power parity)

$172.3 billion (2010 est.)
$174.2 billion (2009 est.)
$188.4 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$204.3 billion (2010 est.)

GDP - real growth rate

-1% (2010 est.)
-7.6% (2009 est.)
-3.5% (2008 est.)

GDP - per capita (PPP)

$37,300 (2010 est.)
$38,000 (2009 est.)
$41,700 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 2%
industry: 29%
services: 70% (2009 est.)

Population below poverty line

5.5% (2009 est.)

Labor force

2.14 million (2010 est.)

Labor force - by occupation

agriculture: 5%
industry: 20%
services: 76% (2010 est.)

Unemployment rate

13.6% (2010 est.)
12.4% (2009)

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 27.2% (2000)

Distribution of family income - Gini index

29.3 (2009)
35.9 (1987)

Investment (gross fixed)

11.3% of GDP (2010 est.)

Budget

revenues: $70.66 billion
expenditures: $136.8 billion (2010 est.)

Taxes and other revenues

34.6% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-32.4% of GDP (2010 est.)

Public debt

96.7% of GDP (2010 est.)
65.6% of GDP (2009 est.)

Inflation rate (consumer prices)

-0.9% (2010 est.)
-4.5% (2009 est.)

Central bank discount rate

1.75% (31 December 2010)
1.75% (31 December 2009)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

2.1% (31 December 2010 est.)
2.5% (31 December 2009 est.)

Stock of money

$NA
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of narrow money

$133.8 billion (31 December 2010 est.)
$145 billion (31 December 2009 est.)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

Stock of broad money

$248.6 billion (31 December 2010 est.)
$283.7 billion (31 December 2009 est.)

Stock of quasi money

$NA

Stock of domestic credit

$745.7 billion (31 December 2009 est.)
$738.5 billion (31 December 2008 est.)

Market value of publicly traded shares

$63.1 billion (31 December 2010)
$61.7 billion (31 December 2009)
$49.4 billion (31 December 2008)

Agriculture - products

beef, dairy products, barley, potatoes, wheat

Industries

pharmaceuticals, chemicals, computer hardware and software, food products, beverages and brewing; medical devices

Industrial production growth rate

7.5% (2010 est.)

Electricity - production

27.28 billion kWh (2010 est.)

Electricity - production by source

fossil fuel: 95.9%
hydro: 2.3%
nuclear: 0%
other: 1.7% (2001)

Electricity - consumption

26.99 billion kWh (2010 est.)

Electricity - exports

290 million kWh (2010 est.)

Electricity - imports

756 million kWh (2010 est.)

Oil - production

0 bbl/day (2009 est.)

Oil - consumption

160,900 bbl/day (2009 est.)

Oil - exports

19,270 bbl/day (2009 est.)

Oil - imports

181,600 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2010)

Natural gas - production

392 million cu m (2009)

Natural gas - consumption

4.999 billion cu m (2009)

Natural gas - exports

0 cu m (2009)

Natural gas - imports

4.628 billion cu m (2009)

Natural gas - proved reserves

9.911 billion cu m (1 January 2010 est.)

Current Account Balance

-$1.477 billion (2010 est.)
-$6.762 billion (2009 est.)

Exports

$111.3 billion (2010 est.)
$107.3 billion (2009 est.)

Exports - commodities

machinery and equipment, computers, chemicals, pharmaceuticals; live animals, animal products

Exports - partners

US 21%, Belgium 17%, UK 16.1%, Germany 7%, France 5.4% (2009)

Imports

$61.98 billion (2010 est.)
$62.22 billion (2009 est.)

Imports - commodities

data processing equipment, other machinery and equipment, chemicals, petroleum and petroleum products, textiles, clothing

Imports - partners

UK 35.4%, US 16.8%, Germany 6.8%, Netherlands 5.9%, France 4.8% (2009)

Reserves of foreign exchange and gold

$2.115 billion (31 December 2010 est.)
$2.154 billion (31 December 2009 est.)

Debt - external

$2.253 trillion (30 September 2010)
$2.087 trillion (31 December 2009)

Stock of direct foreign investment - at home

$228 billion (31 September 2010 est.)
$236.2 billion (31 December 2009)

Stock of direct foreign investment - abroad

$286.2 billion (31 September 2010)
$264.6 billion (31 December 2009)

Exchange rates

euros (EUR) per US dollar -
0.755 (2010)
0.7198 (2009)
0.6827 (2008)
0.7345 (2007)
0.7964 (2006)

Denmark Economy

Denmark's industrialized market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark advocates a liberal trade policy. Its standard of living is among the highest in the world. In 2011, Denmark is expected to devote about 0.84% of gross national income (GNI) to foreign aid to less developed countries, including for peace and stability purposes, refugee pre-asylum costs, and environmental purposes in central and eastern Europe and developing countries, making Denmark one of the few countries that are contributing more than the UN goal of 0.7 % of GNI to aid.

Denmark is a net exporter of food and energy. Its principal exports are machinery, instruments, and food products. The United States is Denmark's largest non-European trading partner, accounting for 5.0% of total Danish goods trade in 2010. Aircraft, computers, machinery, and instruments are among the major U.S. exports to Denmark. Among major Danish exports to the United States are industrial machinery, chemical products, furniture, pharmaceuticals, canned ham and pork, windmills, and plastic toy blocks (Lego). In addition, Denmark has a significant services trade with the U.S., a major share of it stemming from Danish-controlled ships engaged in container traffic to and from the United States (notably by Maersk-Line). There were 436 U.S.-owned companies operating in Denmark in 2008, not including financial service companies.

Like the rest of the world, Denmark was affected by the 2008-2009 global economic crisis. Most local observers agree that Denmark is on the path to a slow recovery, with economic growth from the third quarter of 2009 onward. Gross unemployment averaged 6.0% in 2010, up from 2.7% in 2008; the average length of the unemployment period has increased. Unemployment is not anticipated to decrease before the end of 2011. Private consumption has contracted significantly and is still below pre-crisis levels. The same goes for industrial production, which has been pushed to the lowest level in over a decade. Exports fell dramatically--about 20%--also due to the devaluation of trading partners’ currencies, especially those of Sweden, Norway, and the U.K. In 2010 exports regained some of the loss with 10% growth. The gross domestic product contracted by 4.9% in 2009, but is estimated to have grown by 2% in 2010 after beginning to rebound in the third quarter of 2009. The government estimates GDP growth of 1.7% in 2011 and 1.5% in 2012. In 2008, the budget surplus was $11.58 billion (3.4% of GDP), which changed to a deficit of $8.5 billion in 2009 (2.7% of GDP). The deficit was estimated at $11.11 billion in 2010 and is forecast to be $14.93 billion in 2011 (3.6% and 4.7% of GDP, respectively), exceeding the 3% limit set by the Economic and Monetary Union of the EU (EMU). The government has proposed plans for fiscal consolidation to bring the deficit below 3% of GDP by 2013; as of January 2011, the EU Commission said that Denmark’s responses to remedy the excessive deficits had been adequate. Public debt reached 41.4% of GDP in 2009 but remains well within the 60% limit set by the EMU. It was estimated to increase to 43.3% in 2010 and is forecast to be 43.8% in 2011.

In addition to the global crisis, Denmark has an underlying growth problem, and is projected to have one of the lowest productivity growth rates among Organization for Economic Cooperation and Development (OECD) countries in the decade to come; it dropped from sixth to twelfth place among the richest OECD nations from 1997 to 2007. Denmark is facing demographic challenges that could lead to labor supply shortages as early as 2012 according to some estimates. Denmark has maintained a stable currency policy since the early 1980s, with the krone formerly linked to the Deutschmark and since January 1, 1999, to the euro. The Greek financial crisis has affected Denmark to some extent--as the euro falls in value, the krone also falls, making Danish exports more competitive. Denmark’s contribution to the EU financial support package to Greece was 1.2 billion euro. As of 2010, Denmark no longer meets the economic convergence criteria for participating in the EMU due to its public deficit rising above the allowed 3% of GDP. Prior to the Greek financial crisis, opinion polls showed a majority in favor of the EMU, though polling at the end of 2010 showed strong support for a "no" vote in the event of a referendum on joining the eurozone. No referendum on the EMU/euro is expected before a general election that must be held in 2011, nor until polling shows a significant majority for a "yes" vote.

Danes are generally proud of their welfare safety net, which ensures that all Danes receive basic health care and need not fear real poverty. However, there is a growing political debate about how government policy should be reformed in order to preserve and strengthen the system. The portion of working-age Danes (16 to 66-year-olds) living mostly on government transfer payments amounts to 22.6% (2009). The heavy load of government transfer payments burdens other parts of the system. Health care, other than for acute problems, and care for the elderly and children have suffered, while taxes remain among the highest in the world. About one-third of the labor force is employed in the public sector.

Greenland
On June 21, 2009, Greenland assumed increased autonomy under a Self Rule Act, transitioning away from “home rule”, which had been in effect since 1979. Under self rule, the Greenlandic government (Naalakkersuisut) and the Danish Government are recognized as equal partners and Kalaallisut, the Inuit dialect, becomes the official language. Greenland will gradually take responsibility for additional government functions, such as prisons, criminal justice, courts of law, family law, passports, and mineral resources. The Danish Government freezes its annual block grant at the 2007 level of 3.2 billion kroner ($570 million, 2010 exchange rate). That grant will be adjusted for Danish inflation, though not the often higher Greenlandic inflation, meaning the value in real terms is expected to shrink in coming years. However, Greenland gains rights to its mineral, oil, and natural gas resources: the first 75 million kroner ($13.3 million) from mineral/oil/gas revenues would go to Greenland, with further revenues split equally between the two governments, and with Denmark’s share being subtracted from the annual block grant. Once the block grant is eliminated, any additional revenue would be subject to renegotiation between the Danish and Greenlandic governments.

The public sector in Greenland, including publicly owned enterprises and the municipalities, plays the dominant role in the economy and employs roughly 50% of the workforce. A large part of government revenues still comes from the Danish Government block grant, 46% in 2009. The block grant remains an important supplement to GDP. About one-third of government revenue came from taxes in 2009.

According to the World Bank, Greenland’s GDP was $1.8 billion in 2008, and GNI per capita was $32,960. The global economic slowdown affected Greenland as well; a contraction of 2% of GDP was expected for 2009, although statistics for that period have not yet been released. The surpluses in the public budget turned to a deficit of $30 million in 2009, and unemployment is on the rise after an extended period from 2003 onward with lower unemployment. The average unemployment rate for 2008 was 5.5%, 7.1% in 2009, and averaged 8.3% for the first three quarters of 2010. Structural reforms are still needed in order to create a broader business base and economic growth through more efficient use of existing resources in both the public and the private sectors.

Due to its continued dependence on exports of fish (mainly shrimp), which make up 85% of goods exports, Greenland’s economy remains very sensitive to foreign developments. Greenland has registered a foreign trade deficit since the closure of the last remaining lead and zinc mine in 1989. The trade deficit reached $325 million, or 18% of GDP, in 2009. International interest in Greenland’s mineral wealth is increasing. International consortia are increasingly active in exploring for hydrocarbon resources off Greenland’s western coast; in November 2010, seven exclusive licenses for exploration and exploitation of oil and gas were awarded. There are international studies indicating the potential of oil and gas fields in northern and northeastern Greenland. The U.S. Geological Survey estimates that up to 17 billion barrels of oil and gas are present in the area between Canada and Northwest Greenland. Cairn Energy carried out three exploration drillings in Greenland in 2010, the first exploration drilling in Greenland in 10 years, and discovered gas and oil-bearing sands in one of the drillings. The U.S. aluminum producer Alcoa in May 2007 concluded a memorandum of understanding with the Greenland Home Rule Government to build an aluminum smelter and associated power generation facility in Greenland to take advantage of abundant hydropower potential, although progress on that project has been delayed. It is estimated that, upon completion, the Alcoa investment would be worth approximately $2.5 billion. Tourism also offers another avenue of economic growth for Greenland, with increasing numbers of cruise lines now operating in Greenland’s western and southern waters during the peak summer tourism season.

Faroe Islands In early 2008 signs of an impending slowdown in the Faroese economy became apparent. The main difficulty lay with the fishing industry coming under pressure from smaller catches combined with historically high oil prices. Reduced catches, especially of cod and haddock, strained the Faroese economy in 2008-2009. GDP grew 24% (in current prices) between 2004 and 2008 but then contracted by 0.8% in 2008 and by 4.2% in 2009. According to the Governmental Bank of the Faroes (Landsbanki Foroya), indications were that in 2010 the Faroese economy was about to change from a downturn to growth, and nominal GDP was projected to grow by 2.9%. The bank predicts that there are prospects for nominal economic growth in 2011 (about 5%) and some years ahead. The main drivers of growth are considerably higher output levels in the fisheries sector in 2010 and expectations for increased private spending. The public sector is expected to reduce its deficit in 2011, and the Governmental Bank expects that the public budget will be brought into balance over the course of 5 years.

The temporary slowdown in the Faroese economy followed a strong performance since the mid-1990s, with annual growth rates averaging close to 6%, mostly as a result of increased fish landings and salmon farming and high and stable export prices. Positive economic development had helped the Faroese Home Rule Government produce increasing budget surpluses that in turn helped to reduce the large public debt, most of it to Denmark. Most of the Faroese who emigrated in the early 1990s (some 10% of the population) due to an economic recession have returned. Unemployment had been low since 2003 and practically non-existent at its lowest level of 1.2% in April 2008 but has since increased sharply, with average unemployment of 5.7% in 2010 and rising. The Faroese economy is very vulnerable, due to its dependence on fishing and salmon farming and fluctuating energy prices.

The currency of the Faroe Islands is the Foroyska kronan. However, it is not an independent currency. Faroese bank notes are Danish bank notes that feature Faroese motifs. There are no Faroese coins.

Initial discoveries of oil in the Faroese area give hope for eventual oil production, which may lay the basis for a more diversified economy and thus less dependence on Denmark and Danish economic assistance. Aided by an annual subsidy from Denmark corresponding to about 6% of Faroese GDP, the Faroese have a standard of living comparable to that of the Danes and other Scandinavians.

Politically, the present Faroese Home Rule Government has initiated a process toward greater independence from Denmark, if not complete secession from the realm. In that respect, agreement on how to phase out the Danish subsidy plays a crucial role.

GDP (2009): $297.8 billion (current prices and exchange rates; source: Government of Denmark).

Annual growth rate (real terms, 2009): -4.9%.
Per capita GDP (2009): $53,822 (current prices and exchange rates).

Agriculture and fisheries (2.3% of GDP, 2009): Products--meat, milk, grains, seeds, hides, fur skin, fish and shellfish.

Industry (19.3% of GDP, 2009): Types--industrial and construction equipment, food processing, electronics, chemicals, pharmaceuticals, furniture, textiles, windmills, and ships.

Natural resources: North Sea--oil and gas, fish. Greenland--fish and shrimp, potential for hydrocarbons and minerals, including zinc, lead, molybdenum, uranium, gold, platinum. The Faroe Islands--fish, potential for hydrocarbons.

Trade (2010, goods): Exports--$96.281 billion: industrial production/manufactured goods 73.3% (of which machinery and instruments were 21.4%, and fuels, chemicals, etc. 26%); agricultural products and others for consumption 18.7% (in 2009 meat and meat products were 5.5% of total export; fish and fish products 2.9%). Imports--$83.967 billion: raw materials and semi-manufactures 37.4%; consumer goods 17.9%; capital equipment 21.7%; transport equipment 9.7%; fuels 8.0%. Major trade partners, exports--Germany 16.8%, Sweden 13.3%, U.K. 7.8%, U.S. 6.6%, Norway 6.3%, Holland 4.4%. Major trade partners, imports--Germany 20.8%, Sweden 13.3%, Holland 7.1%, U.K. 6.0%, China 7.6%, Norway 3.9%, U.S. 3.2%.

Official exchange rate (2010 average): 5.62567 kroner=U.S. $1.

South Africa Economy Overview

Overview

Real GDP has recovered from -1.7% in 2009 to 2.8% in 2010; this rate of GDP growth remained clearly below potential, estimated around 4% per annum for South Africa. GDP is expected to grow at a rate of 3.6% in 2011 and 4.3% in 2012. GDP growth for 2010 was driven primarily by a steady recovery in consumer spending, partially attributed to the FIFA World Cup. Inflation fell to 3.5% by the end of 2010, averaged 4.3% in 2010, and is expected to reach 5.3% in 2011.

The consolidated government deficit rose to 6.9% of GDP in fiscal year 2009/10, and the central bank’s policy rate declined by 6.5 percentage points since the end of 2008. Fiscal policy is now taking a less expansionary turn, with the consolidated government deficit slowing to an estimated 5.4% in fiscal year 2010/11 and projected to decline further to 5.0% in fiscal year 2011/12. Likely increases in the wage bill pose a downward risk to the fiscal balance outlook as do the possible introduction of a new public health insurance system and youth employment subsidy. The repo rate, the price at which the South African Reserve Bank lends cash to the banking system, is expected to remain close to 5.5% throughout 2011 and to start rising moderately only towards the end of the year.

China has become the top destination for South Africa’s exports since mid-2009 and is also South Africa’s leading source of imports. China is the dominant investment partner among emerging partners with its foreign direct investment (FDI) ranked fifth in terms of value in early 2010, at 33 billion South African rand (ZAR). Many emerging partners use South Africa as a gateway to other African countries. In December 2010, South Africa became an official member of the BRICS (Brazil-Russia-India-China-South Africa) group. The challenge for the government is to show that it has a purposeful plan to engage with BRIC countries, to prioritise its productive capacity, and to maximise its contribution to the national economy. Another challenge is to avoid neglecting traditional partners while nurturing its strategically important emerging partnerships. Indeed, the EU is still South Africa’s topmost regional export destination. The year 2011 will also see the launch of the South African Development Agency (SADPA) to inform and direct the country’s development assistance.

In the political arena, 2010 was characterised by a clearer elaboration of the Zuma administration’s goals, and progress in achieving some of them. The administration has shown strong commitment to fighting crime. Significant progress has been made, for example, in crime prevention. Corruption, however, remains a major challenge, and both unemployment and inequality are on the rise. South Africa has achieved the 1^st Millennium Development Goal (MDG) – reducing the proportion of the population living on less than 1 USD a day by half – but the government still needs to tackle issues such as providing adequate public health services, improving the quality of education, and reducing unemployment, especially for the youth. HIV/AIDS remains a critical issue: South Africa has the world's largest population of people living with HIV: 5.6 million. In April 2010, the Zuma administration launched a campaign to test 15 million people for HIV by end-2011; 5 million people have been tested since the launch began.

Structural challenges such as infrastructure bottlenecks hampered recovery in private investment in 2010. Unemployment remained very high in 2010 even though it declined marginally in the fourth quarter of 2010 to 24% from 25.3% in the previous quarter. The government outlined a number of measures to address these challenges in the New Growth Path framework (November 2010), including more investment in infrastructure, skills enhancement, public service and regional economic ties.

Figure 1: Real GDP growth (S)

Source: IMF and local authorities’ data; estimates and projections based on authors’ calculations.

Figures for 2010 are estimates; for 2011 and later are projections.

Table 1: Macroeconomic indicators

	2009	2010	2011	2012
Real GDP growth	-1.7	2.8	3.6	4.3
CPI inflation	7.1	4.3	5.3	5.6
Budget balance % GDP	-6.9	-5.4	-5	-4.5
Current account % GDP	-4.1	-2.8	-3.4	-4.3

Source: National authorities' data; estimates and projections based on authors' calculations.

Figures for budget balance refer to fiscal years; thus 2009 corresponds to FY 2009/10, running from April 2009 to March 2010, for instance.

Figures for 2010 are estimates; for 2011 and later are projections.

Spain Economy

Agriculture

Agriculture remains a major part of the Spanish economy and employs, along with forestry and fishing, 7 percent of the labour force.
The two main agricultural products are grapes, used to make wine, and olives, used to make olive oil. Other main products include oranges, almonds, cereal grains (especially barley, wheat, and rice), vegetables (especially tomatoes and onions) and root crops (mainly potatoes and sugar beets).
The raising of livestock, especially sheep and goats, is an important industry. In 2002 livestock on farms included 24.3 million sheep, 23.9 million pigs, 6.4 million cattle, and 248,000 horses.

Forestry and Fishing

The cork-oak tree is the principal forest resource of Spain, and the annual production of cork, more than 52,000 metric tons in the late 1980s, placed Spain among the world leaders. The yield of Spain’s forests is insufficient for the country’s wood-pulp and timber needs.
The fishing industry is important to the Spanish economy. The catch consists mostly of sardines, mussels, tuna, hake, and squid.

Mining

The mineral wealth of Spain is considerable consisting mainly of coal, iron ore, zinc, copper and lead. Gold and silver are also mined and petroleum is extracted. The main coal mines are in the northwest, near Oviedo; iron-ore deposits are in the same area, around Santander and Bilbao whilst copper and lead are mined in Andalusia.

Manufacturing

The main manufactured goods in Spain are textiles, iron and steel, motor vehicles, chemicals, clothing, footwear, ships and boats, refined petroleum, and cement. Spain is one of the world’s leading wine producers. About 31 percent of the labour force is employed in manufacturing, mining, and construction.

Energy

Over 50 % of Spain's electricity comes from conventional thermal plants fuelled by coal or refined petroleum. Hydroelectric power accounts for around 18 percent, and nuclear installations about 27 percent. 

Currency and Banking

Spain is a full member of the European Single Currency. On January 1, 2002, the Euro came into circulation and within a few months the former currency, the peseta, ceased to be legal tender.
Spain is served by a large number of national and international commercial banks. The main stock exchanges are in Madrid, Barcelona, Bilbao, and Valencia.

Foreign Trade

Spain's main imports include machinery, mineral fuels, transportation equipment, food products, metals and metal products, and textiles. Her exports include motor vehicles, machinery, basic metals, vegetable products, chemicals, mineral products, and textiles. France, Germany, Italy, the United Kingdom, Portugal, and the United States are the chief export markets whilst France, Germany, Italy, the United Kingdom, Belgium, the United States, and Japan provide most of the imports. A balance of trade deficit is the norm.

Tourism

Spain is the world's third most visited country after the USA and France. Revenue from the 78 million tourists who visited Spain in 2002 helped make up for Spain’s considerable trade deficit.

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.


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