Germany Economy Profile 2002

Economy - overview

Germany's affluent and technologically powerful economy turned in a relatively weak performance throughout much of the 1990s. The modernization and integration of the eastern German economy continues to be a costly long-term problem, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing 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. Business and income tax cuts introduced in 2001 did not spare Germany from the impact of the downturn in international trade, and domestic demand faltered as unemployment began to rise. Growth in 2002 again fell short of 1%. 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 addressed. In the short run, however, the fall in government revenues and the rise in expenditures has brought the deficit close to the EU's 3% debt limit.

GDP (purchasing power parity)

purchasing power parity - $2.184 trillion (2002 est.)

GDP - real growth rate

0.4% (2002 est.)

GDP - per capita (PPP)

purchasing power parity - $26,600 (2002 est.); (2002 est.)

GDP - composition by sector

agriculture: 1%
industry: 31%
services: 68% (2002 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 4%
highest 10%: 25% (1997)

Inflation rate (consumer prices)

1.3% (2002 est.)

Labor force

41.9 million (2001)

Labor force - by occupation

industry 33%, agriculture 3%, services 64% (1999)

Unemployment rate

9.8% (2002 est.)

Distribution of family income - Gini index

30 (1994)

Budget

revenues: $802 billion
expenditures: $825 billion, including capital expenditures of $NA (2001 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

-2.1% (2002 est.)

Electricity - production

537.33 billion kWh (2000)

Electricity - production by source

fossil fuel: 63%
hydro: 4%
nuclear: 30%
other: 3% (2000)

Electricity - consumption

501.72 billion kWh (2000)

Electricity - exports

42.5 billion kWh (2000)

Electricity - imports

44.5 billion kWh (2000)

Agriculture - products

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

Exports

$608 billion f.o.b. (2002 est.)

Exports - commodities

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

Exports - partners

France 11.1%, US 10.6%, UK 8.4%, Netherlands 6.2%, Austria 5.1%; Belgium 4.9%, Spain 4.5%, Switzerland 4.3% (2001) (2001)

Imports

$487.3 billion f.o.b. (2002 est.)

Imports - commodities

machinery, vehicles, chemicals, foodstuffs, textiles, metals

Imports - partners

France 9.4%, Netherlands 8.4%, US 8.3%, UK 6.9%, Italy 6.5%, Belgium 5.2%, Japan 4.1%, Austria 3.8% (2001)

Debt - external

$NA

Economic aid - donor

ODA, $5.6 billion (1998)

Currency

euro (EUR); deutsche mark (DEM)
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

Currency (code)

EUR; DEM

Exchange rates

euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); deutsche marks per US dollar - 1.69 (January 1999), 1.7597 (1998), 1.7341 (1997)

Fiscal year

calendar year