Germany Economy Profile 2006

Economy - overview

Germany's affluent and technologically powerful economy - the fifth largest in the world - has become one of the slowest growing economies in the euro zone. A quick turnaround is not in the offing in the foreseeable future. Growth in 2001-03 fell short of 1%, rising to 1.7% in 2004 before falling back to 0.9% in 2005. 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 $70 billion. Germany's aging population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit.

GDP (purchasing power parity)

$2.48 trillion (2005 est.)

GDP (official exchange rate)

$2.73 trillion (2005 est.)

GDP - real growth rate

0.9% (2005 est.)

GDP - per capita (PPP)

$30,100 (2005 est.)

GDP - composition by sector

agriculture: 0.9%
industry: 29.6%
services: 69.5% (2005 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 25.1% (1997)

Inflation rate (consumer prices)

2% (2005 est.)

Investment (gross fixed)

17.1% of GDP (2005 est.)

Labor force

43.32 million (2005 est.)

Labor force - by occupation

agriculture: 2.8%
industry: 33.4%
services: 63.8% (1999)

Unemployment rate

11.7% (2005 est.)

Distribution of family income - Gini index

28.3 (2000)

Budget

revenues: $1.249 trillion
expenditures: $1.362 trillion; including capital expenditures of $NA (2005 est.)

Public debt

67.3% of GDP (2005 est.)

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 production growth rate

2.9% (2005 est.)

Electricity - production

558.1 billion kWh (2003)

Electricity - consumption

510.4 billion kWh (2003)

Electricity - exports

54.1 billion kWh (2003)

Electricity - imports

45.4 billion kWh (2003)

Oil - production

158,700 bbl/day (2003)

Oil - consumption

2.677 million bbl/day (2003)

Oil - imports

2.135 million bbl/day (2003)

Oil - exports

12,990 bbl/day (2003)

Oil - proved reserves

395.8 million bbl (1 January 2004)

Natural gas - production

22.22 billion cu m (2003 est.)

Natural gas - consumption

93.88 billion cu m (2003 est.)

Natural gas - exports

7.731 billion cu m (2003)

Natural gas - imports

85.02 billion cu m (2003)

Natural gas - proved reserves

305.8 billion cu m (1 January 2004)

Current Account Balance

$115.5 billion (2005 est.)

Agriculture - products

potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultry

Exports

$1.016 trillion f.o.b. (2005 est.)

Exports - commodities

machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles

Exports - partners

France 10.2%, US 8.8%, UK 7.9%, Italy 6.9%, Netherlands 6.1%, Belgium 5.6%, Austria 5.4%, Spain 5.1% (2005)

Imports

$801 billion f.o.b. (2005 est.)

Imports - commodities

machinery, vehicles, chemicals, foodstuffs, textiles, metals

Imports - partners

France 8.7%, Netherlands 8.5%, US 6.6%, China 6.4%, UK 6.3%, Italy 5.7%, Belgium 5%, Austria 4% (2005)

Reserves of foreign exchange and gold

$101.7 billion (2005 est.)

Debt - external

$3.626 trillion (30 June 2005)

Economic aid - donor

ODA, $5.6 billion (1998)

Currency (code)

euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates

euros per US dollar - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)

Fiscal year

calendar year