Siemens, Porsche, Lufthansa, SAP. German companies enjoy an
excellent international reputation. They represent the world's
respected as a quality seal "Made in Germany". They
stand for innovation, quality and technical advantage. But
the third-largest economy on earth, which are not only the
"global player", but also many world leaders from
the middle class, the heart of the German economy. They all
build on good economic conditions in the "Land of Ideas"
and the excellent qualifications of workers. Foreign investors
also appreciate it - as a location advantage in times of global
is among the most developed industrial nations of the world
after the United States and Japan the third largest economy.
With 82.3 million inhabitants, Germany is the largest and
most important market in the European Union (EU). In 2007,
in Germany, generated a gross domestic product (GDP) from
2.423 trillion euros, representing a sum of 29,455 euros
per capita. This achievement is based primarily on foreign
trade. With an export volume of 969 billion euros (2007),
more than one third of gross national income, Germany is
the world's largest exporter of goods. 2007, Germany became
the fifth consecutive "export champion". Thus
Germany than any other country is globally oriented and
economically stronger than many other countries are intertwined
with the global economy. More than one in four euros is
in the export of goods and services worth - more than one
in five jobs depends on foreign trade. The most important
economic centers in Germany are the Ruhr (industrial region
in transformation to high-tech and) service center, the
metropolitan areas of Munich and Stuttgart (high tech, automotive),
Rhein-Neckar (Chemistry), Frankfurt (finance), Cologne,
Hamburg (port, Airbus aircraft, the media), Berlin and Leipzig.
the German economy has experienced a robust cyclical upswing
- in 2007 it grew by 2.5 percent. With 8.4 percent of the
increase in business investment was also made very clear.
With the economic growth that benefited from the growth
trends both from abroad and from within the country appears
to involve a reduction in the number of registered unemployed
people. In December 2007 it stood at 3.4 million - which
was the lowest December level since 1992. This positive
economic and labor market development, there are a number
of factors. The economic policy has improved the so-called
framework conditions and the companies have improved their
competitiveness. Thus, the wage labor costs were reduced,
the labor market more flexible and reduce bureaucracy. Also
entered 2008, the reform of corporation tax in force. Thus
the companies will continue to pay significantly less. The
entrepreneurs have also shopping and optimized cost structures,
investing in innovative products and made fit for competition.
the perspective of international investors (international
investors), Germany is one of the most attractive locations
around the world. The resulting recent surveys of international
managers as well as studies of internationally renowned
consulting firms. In a 2007 study of audit and consulting
firm Ernst & Young, the attractiveness of the economy,
Europe has been studied. Thus, Germany can claim from the
perspective of foreign managers as the leading location
in Europe. In international comparison, Germany site performs
particularly well in research and development, starting
in the qualification of its workforce and logistics. There
are also the central geographical location, infrastructure,
legal certainty and the workforce. Between 1997 and 2006
were made in Germany 473 billion U.S. dollars of foreign
direct investment, including major investments by companies
such as General Electric or AMD. Thus, Germany ranks fifth
among the countries with the largest foreign direct investment.
Plus as an essential qualification of workers is considered.
Approximately 81 percent of workers have received vocational
training, 20 percent of them have a university or college
degree. Another pillar of the high skill level is the "dual
system" of vocational education, linking school-house
with training and produces a recognized high quality of
of the high export orientation of Germany is interested
in open markets. The main trading partners are France, the
United States and Britain. According to France in 2006 goods
and services worth 85 billion euros have been exported to
the United States worth 78 billion euros and the UK, worth
65 billion euros. Since the Eastern enlargement of the EU
(2004 and 2007) is seen next to the trade with the "old"
EU countries, a strong upturn in trading with the eastern
European EU member countries. Overall, a good ten percent
of all exports are made in these countries.
growing importance of trade and economic relations with
emerging Asian countries like China and India. Were the
German exports to the region of 1993 or at 33 billion euros,
it is now increased by more than tripled to 104 billion
euros (2006). The number of German companies in Asia increased
during the same period of 1800 to 3500, direct investment
has quadrupled in that time over.
is a social market economy, that is: The state guarantees
free economic action, trying, however, a social balance.
Also, because of this concept, Germany is a country with
high social peace, which is reflected in very few labor
disputes. On average, from 1996 to 2005 was a strike in
Germany per 1000 employees in just 2.4 days, and thus even
less than in Switzerland, with an average of 3.1 days of
strike. The social partnership of trade unions and employers
is permitted by the institutionalized conflict resolution
within the framework of collective labor law. The Basic
Law guarantees the free collective bargaining, which accords
the two sides of the right to regulate Arbeitsdingungen
independently in collective agreements.
working people (72.3 percent) are employed in Germany in
the service sector. Are essential, as are including transport,
hospitality, the social and health care, housing and the
financial industry. The production sector, 25.5 percent
of the workforce, fisheries, agriculture and forestry 2.2
percent (data: 2006).
Germany has considerable natural resources, particularly
in the field of coal (and coal), lignite, potash in the
area, building materials and stones and earth. In addition,
natural gas reserves are located in Lower Saxony. The densely
populated industrial country with the fifth-largest energy
consumption (after USA, China, Japan and India) around the
world is still dependent on commodity imports. The importance
of domestic coal from the Ruhr and the Saar and the lignite
in Saxony and Saxony-Anhalt declined in recent decades.
2005, about 47 percent of electricity production and 24
percent of total energy from coal ), coal and coke produced
from it is done today, especially for the local steel industry
and metal processing industry is important. Our own generated
from oil production in Germany in the 1960s to 30% of domestic
demand, now only 3%.
Even agriculture, forestry and its downstream industries
are key industries, based in Germany. Forest accounts for
about one third of the land area, are in the economy as
a whole timber according to the Consortium of German Forest
Owners Associations (AGDW) more than one million employees
and an annual turnover of more than 100 billion euros to
Consumer spending in Germany amounted to 2008, around 1857
billion euros, of which 1404 billion and 453 billion euros
by private individuals through government spending.
partner and foreign trade statistics
is Germany's main trading partner. The total value of exports
there in 2008 amounted to 96.86 billion euros, the total
value of goods imported from France to Germany, for 2008
came to 66.71 billion euros. Overall, were exchanged in
2008 goods worth 163.57 billion euros between the two countries.
The Netherlands is the second largest trading partner of
Germany. Overall in 2008 exchanged goods and services valued
at 137.72 billion euros between Germany and the Netherlands.
These imports amounted to 72.08 billion euros to Germany,
exports to the Netherlands amounted to 65.64 billion euros.
The third-largest trading partners are the United States
of America with a value share in total 117.53 billion euros,
46.06 billion euros of imports into Germany, and 71.47 billion
euros in exports to the U.S. ..
Total 2008 goods worth 994.87 billion euro were exported
to and imported 818.62 billion. This means that compared
to the year 2006, a rise in exports by 11.3 percent and
a rise in imports by 11.9 percent. The foreign trade balance
in 2008) with a surplus of 176.25 billion euros (2006: 162.1
The strong euro, the German products in countries outside
the euro zone, was considerably more expensive, had a very
small, there goes most of the goods exported to EU countries.
In 2008, the share of exports to the EU stood at 64 percent
of total German exports. Only 10 percent of German exports
go to America, 12 percent go to Asia.
Exports in 2006 were 21 percent of the German gross domestic
product (imports to 14 percent and the domestic economy,
ie economic transactions within the country) to 65 percent
With an export value of 969 billion euro and a trade surplus
of 199 billion euros in Germany in 2007 was again the country
(commonly with the world's most exports, often called the
"export world champion" means).
This record trade surplus (exports is significantly more)
than imports, but also seen critical. Firstly, as Germany
with its strong export orientation is dependent on the development
abroad. On the other criticism is that the German economy
through this current account imbalance prevents sustainable
development in Europe. Germany benefits with its trade surplus
with wage cuts them when neighboring European countries
can not strengthen its domestic economy, but the neighbors
turned increasingly to import into Germany.
Due to the increasing global trade leads to increased division
of labor, and thus not only an increase of exports but also
imports. Some economists, such as, for example, Hans-Werner
Sinn, because of the increase of imported inputs of the
opinion that Germany turn into a bazaar economy.
Germany mainly exports (47.2 percent of total exports, 2007)
automobiles, machinery, chemicals and heavy electrical equipment.
Much of the German trade activities held within industrialized
countries, the same industry or even the same company instead
(see above), so are automobiles, machinery and chemical
products are also key import products. However, significantly
more of these goods from Germany exported than imported.
Motor vehicles and parts from making while 19.1 percent
of German exports, 14.7 percent, machinery and chemical
products 13.4 percent of German exports. Petroleum and natural
gas (compared to export) Germany most important import goods
(imports worth 61 billion euros, 2007).
The economic demands, which are represented by the research
institutes in the common diagnoses that correspond to the
concept of so-called supply-side economics.
Fiscal institutions are committed to a reduction in borrowing
and fiscal consolidation.
In the labor they put a view of the structural unemployment
remains high for repeated measures, notably increases in
low-wage sector, the incentives to work and improve the
sustainable integration into employment. To enable the integration
of unemployed into the work process is, according to the
Institute, the rise in wages in the overall average less
than the sum of the trend rate of inflation expectations
and the trend rate of aggregate productivity growth lie.
Particularly significant was their policy positions in the
spring report 2005, in which they demanded far-reaching
economic reforms to overcome the weak growth of the German
economy. The state must reduce its impact on economic activity
and increase the scope for private initiative. The share
of government spending in GDP, the state's share should
be reduced. The state should reduce subsidies, lower taxes
and new debt. In the area of social policy, citizens should
take more responsibility. The state should be responsible
only for providing basic sickness, unemployment and old
The majority of economists in Germany were inclined to such
positions in recent years, supply-side economics. Thus,
formulated in 2005, more than 250 German professors of economics
supply-side doctrine a fundamental consensus in the Hamburg
parade. According to Michael Huether (2009), a signatory
of the Hamburg appeal is also part of the supply-side economics
that, when strong demand slumps, such as in the context
of the financial crisis of 2007, the adaptability of the
supply-side economics overwhelm, must be based on a Keynesian
situation which issues an urgent demand for policy making.
In its spring report 2009 the Institute held in the current
crisis situation, the procedure adopted by the Federal Government's
stimulus package, although in principle justifiable concerns.
They also argue for a more expansionary monetary policy,
but keep wage reductions, which would be useful. Some of
its assessments and recommendations in detail:
Fiscal Policy: The two decided by the Federal Government's
economic stimulus programs included with the investment
projects, the reductions in marginal tax rates and the reduction
of social security measures that can stimulate the growth
medium. Therefore, it is acceptable according to the institutions
they fund through a temporary debt. In its fall report 2008,
she still believed, however, economic programs in the traditional
sense are unlikely to be successful.
Monetary policy: The European Central Bank, ECB, has reduced
significantly since the worsening of the recession and the
interest. Given the depth of the economic downturn and the
prospect that inflation in the euro area for the foreseeable
future will remain significantly below the vision of the
ECB to keep the institutions to adopt a more expansionary
policy direction for appropriate, and the policy rate should
be lowered to 0.5%.
Wage policy: Against the backdrop of recession and rising
unemployment may worsen the bargaining position of trade
unions, insofar as the wage bill is expected to decrease
pressure. Redundancies will be avoided, it is the opinion
of the Institute be useful in many cases, that employers
and employees to agree on wage adjustments. For example,
some collective agreements provide for the possibility to
postpone tariff wage increases.