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Population |
82,400,996 (July 2007 est.) |
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GDP (purchasing power parity) |
$2.632 trillion (2006 est.) |
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GDP - real growth rate |
2.8% (2006 est.) |
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GDP - per capita (PPP) |
$31,900 (Rank 27 - 2006 est.) |
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Labor force |
43.57 million (2006 est.) |
|
Household income or consumption by % share |
lowest 10%: 3.6%
highest 10%: 25.1% (1997) |
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source: CIA-WFB |
econsultants
Potsdamer Platz 11
Berlin 10785
germany@econsults.org |
|
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.
Leading Commercial Sectors
Computer Software
Computer Services
Computer and Peripheral Equipment
Drugs & Pharmaceuticals
Medical Equipment
Management Consulting Services
Electronic Components
Industrial Chemicals
Automotive Parts and Services
Franchising
Telecommunications Equipment
Sporting Goods
Travel & Tourism
Biotechnology
Scientific and Laboratory Instrumentation
Electronic Industry Production and Test Equipment |
