Germany Economy

Is Germany a rich country?

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment. Germany benefits from a highly skilled labor force, but, like its Western European neighbors, faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country'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 economic growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The German Government introduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) in January 2017.

Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2017 Germany reached a budget surplus of 0.7%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.

Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Domestic consumption, investment, and exports are likely to drive German GDP growth in 2018, and the country’s budget and trade surpluses are likely to remain high.

Germany Economy Data

What is the GDP of Germany?

GDP - Gross Domestic Product (PPP) $3,748,000,000,000 (USD)
GDP - official exchange rate $3,371,000,000,000 (USD)
GDP - real growth rate 1.5%
GDP Per Capita $47,400.00 (USD)
GDP by Sector- agriculture 0.7%
GDP by Sector- Industry 30.2%
GDP by Sector- services 69.1%
GDP - composition, by end use household consumption: 54.2%

government consumption: 19.1%

investment in fixed capital: 20.2%

investment in inventories: -0.7%

exports of goods and services: 46.1%

imports of goods and services: -38.9%
Population Below Poverty Line 15.5%
Inflation Rate 2%
Labor Force 44,010,000
Labor Force By Occupation- agriculture 1.6%
Labor Force By Occupation- industry 24.6%
Labor Force By Occupation- services 73.8%
Unemployment Rate 6.5%
Fiscal Year calendar year
Annual Budget $1,511,000,000,000 (USD)
Budget Surplus or Deficit - percent of GDP 0.1%
Public Debt (% of GDP) 81.7%
Taxes and other revenues - percent of GDP 45.3%
Major 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 Growth Rate 8%
Agriculture Products potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultry
Currency Code euro (EUR)
Commercial Bank Prime Lending Rate 2.8%

Labor Force by Occupation- As reported by Germany

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