Germany Economy Profile 2013

Economy - overview

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 and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining 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 growth in 2006 and 2007 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 - and its decrease to 6.5% in 2012. GDP contracted 5.1% in 2009 but grew by 3.7% in 2010, and 3.0% in 2011, before dipping to 0.9% in 2012 - a reflection of the worsening euro-zone financial crisis and the financial burden it places on Germany as well as falling demand for German exports. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduced the deficit to 1.7% in 2011, and the government estimates it had a balanced budget in 2012. 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. 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 hopes to replace nuclear power with renewable energy. 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.

GDP (purchasing power parity)

$3.194 trillion (2012 est.)
$3.101 trillion (2011 est.)
$2.991 trillion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$3.367 trillion (2012 est.)

GDP - real growth rate

0.9% (2012 est.)
3% (2011 est.)
3.7% (2010 est.)

GDP - per capita (PPP)

$39,100 (2012 est.)
$38,700 (2011 est.)
$37,500 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 0.8%
industry: 28.1%
services: 71.1% (2012 est.)

Population below poverty line

15.5% (2010 est.)

Labor force

44.01 million (2012 est.)

Labor force - by occupation

agriculture: 1.6%
industry: 24.6%
services: 73.8% (2011)

Unemployment rate

6.5% (2012 est.)
7.1% (2011 est.)

Unemployment, youth ages 15-24

total: 11%
male: 12%
female: 9.8% (2009)

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 24% (2000)

Distribution of family income - Gini index

27 (2006)
30 (1994)

Investment (gross fixed)

17.8% of GDP (2012 est.)

Budget

revenues: $1.511 trillion
expenditures: $1.511 trillion (2012 est.)

Taxes and other revenues

44.9% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

0% of GDP (2012 est.)

Public debt

80.5% of GDP (2012 est.)
80.6% of GDP (2011 est.)
note: general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the sub-sectors of central government, state government, local government and social security funds; the series are presented as a percentage of GDP and in millions of euro; GDP used as a denominator is the gross domestic product at current market prices; data expressed in national currency are converted into euro using end-year exchange rates provided by the European Central Bank

Inflation rate (consumer prices)

2.2% (2012 est.)
2.5% (2011 est.)

Central bank discount rate

1.5% (31 December 2012)
1.75% (31 December 2010)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

3.1% (31 December 2012 est.)
3.94% (31 December 2011 est.)

Stock of money

$NA
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of narrow money

$1.853 trillion (31 December 2012 est.)
$1.777 trillion (31 December 2011 est.)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

Stock of broad money

$4.281 trillion (31 December 2012 est.)
$4.197 trillion (31 December 2011 est.)

Stock of quasi money

$NA

Stock of domestic credit

$4.253 trillion (31 December 2012 est.)
$4.188 trillion (31 December 2011 est.)

Market value of publicly traded shares

$1.184 trillion (31 December 2011)
$1.43 trillion (31 December 2010)
$1.298 trillion (31 December 2009)

Agriculture - products

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

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

8% (2011 est.)

Current Account Balance

$208.1 billion (2012 est.)
$204.3 billion (2011 est.)

Exports

$1.492 trillion (2012 est.)
$1.547 trillion (2011 est.)

Exports - commodities

motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products

Imports

$1.276 trillion (2012 est.)
$1.333 trillion (2011 est.)

Imports - commodities

machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products

Reserves of foreign exchange and gold

$238.9 billion (31 December 2011 est.)
$216.5 billion (2010 est.)

Debt - external

$5.624 trillion (30 June 2011)
$4.713 trillion (30 June 2010)

Stock of direct foreign investment - at home

$932.8 billion (31 December 2012 est.)
$899.4 billion (31 December 2011 est.)

Stock of direct foreign investment - abroad

$1.464 trillion (31 December 2012 est.)
$1.405 trillion (31 December 2011 est.)

Exchange rates

euros (EUR) per US dollar -
0.7838 (2012 est.)
0.7185 (2011 est.)
0.755 (2010 est.)
0.7198 (2009 est.)
0.6827 (2008 est.)

Fiscal year

calendar year