Germany Economy 2014
Economic Profile of Germany
Germany is a country located in the Western Europe. Germany is composed of sixteen lands or lander and these sixteen states are also known as Germany’s Bundesländer. The neighboring countries of Germany are Denmark, Poland, Austria, France, Switzerland, Netherland, Belgium and Czech Republic. Germany is the most populous country in the European Union. In terms of immigration, Germany has been ranked in the third position. The millions of immigrants from different parts of the world are attracted towards the spectacular German economy.
The Germany also has a well developed trade system which includes both import and export services. In the world, it is ranked as the second largest country in terms of export. The export in 2009 alone has gained about $ 1.170 trillion towards the Germany economy.
Germany is rich in terms of skillful, talented and educated employers which helped German economy to become pioneers in manufacturing industries like Machinery, Vehicle, electronics, chemicals etc. over other countries in the world. The combined effort of these work force helped Germany to handle the recession period in a pleasing manner. In 2009, the Gross Domestic Product (GDP) -PPP (Purchasing Power Parity) of Germany was found to be $2.182 trillion.
Economic Regions of Germany
Unlike other European countries which have the national economy concentrated in its capital city, the Germany has more than one economic centre, thus referred to as a polycentric country.
- Old Bundesländer: Ruhr area is one of the most important economic regions of Germany. It is an urban area located in the western most part of Germany between the Dortmund and Bonn. It is the oldest economic centre in Germany. Around 27 companies are situated in this region which includes biomedicine, electronics, aerospace etc.
- New Bundesländer: This includes five states which have been reestablished through German unification on 3rd October 1990. These five states are Brandenburg, Thuringia, Mecklenburg-Vorpommern, Saxony and Saxony-Anhalt.
Economic Sectors of Germany
Primary Sector: The agriculture is an important activity in Germany. And Germany was ranked as third highest agriculture producer amongst the European Union countries. But after the reunification of Germany, there was a gradual decrease of about 75% in the number of agriculture workers. This resulted unemployment. At present, agriculture contributed about 0.9 % towards the GDP. The crop products cultivated in Germany are Wheat, Barley, Sugar beat, Potatoes, Cabbages etc. The live stock rearing is also of great importance which included cattle, poultry, pigs etc. About 2.4% of citizens are employed in this sector.
Secondary or Industrial Sector: In 2008, it was estimated that construction and industries contributed about 28% towards the GDP. The most important industries of Germany are automobile, machinery, chemical, food and beverages, steel, coal, cement, ship building, iron, etc. The automobile industries of Germany are ranked third in the world. This sector was found to employ about 29.7% of German citizens.
Tertiary Sector: In 2008, the service sectors were found to have contributed a lot towards the German economy. These service sectors accounted for about 69% towards the GDP. The service sector also had improved the employment opportunities in Germany. This sector employs about 67.5% of individuals in Germany.
GDP of Germany from 2000-2009
Germany is positioned fourth in the world as per the GDP (Gross Domestic Product) nominal. And according to GDP-PPR (Purchasing Power Parity), Germany was ranked fifth position in the World. The German economy has flourished so high due to the well established social security prevailing there, and as a result, the Germens were able to lead a high standard life. The GDP growth of Germany from 2000-2009 is as follows:
- In 2000, GDP was € 2062.50 bn
- In 2001, GDP was € 2113. 16 bn
- In 2002, GDP was € 2141.18 bn
- In 2003, GDP was € 2163.80 bn
- In 2004, GDP was € 2210.90 bn
- In 2005, GDP was w€ 2242.20 bn
- In 2006, GDP was € 2325.10 bn
- In 2007, GDP was € 2428.20 bn
- In 2008, GDP was € 2495. 80 bn
- In 2009, GDP was € 2409.10 bn
Job Scenario in Germany & Role in Germany Economy
By the end of 2008, the unemployment rate in Germany was found to have an 8% decrease. The German Government has introduced many plans to over the problem of unemployment. The most important among this is the increase made in the age of retirement as 65 to 67. Priorities are also given here for female employers. The rate of unemployment was estimated as 7.44% by the end of 2009.
Germany Current Account Balance
The current account balance of a country is of great importance for analyzing its economical status. By the end of year 2009, the account balance of Germany was $ 160.627. By the end of 2009, it is estimated that the account might close at $ 181.91.
Trade System of Germany
The German economy has a very well developed trade system which includes both import and export. In 2009 the export alone brought about 1.170 trillion towards the countries economy and was ranked third in the world ranking. The most important goods exported from Germany are chemicals, food stuffs, textiles, vehicles, metals, machinery etc. In case of import also Germany was ranked third in the world. In 2009, the import was estimated to be around $ 1.022.