Germany Economy Profile 2009

Economy - overview

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - began to contract in the second quarter of 2008 as the strong euro, high oil prices, tighter credit markets, and slowing growth abroad took their toll on Germany's export-dependent economy. At just 1% in 2008, GDP growth is expected to be negative in 2009. Recent stimulus and lender relief efforts will make demands on Germany's federal budget and undercut plans to balance its budget by 2011. The reforms launched by the former government of Chancellor Gerhard SCHOEDER, deemed necessary due to chronically high unemployment and low average growth, led to strong growth in 2007, while unemployment in 2008 fell below 8%, a new post-reunification low. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006-07 and a 3% rise in the value-added tax cut Germany's budget deficit to within the EU's 3% debt limit in 2007. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. The modernization and integration of the eastern German economy - where unemployment still exceeds 30% in some municipalities - continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. While corporate restructuring and growing capital markets have set strong foundations to help Germany meet the longer-term challenges of European economic integration and globalization, Germany's export-oriented economy has proved a disadvantage in the context of weak global demand.

GDP (purchasing power parity)

$2.918 trillion (2008 est.)
$2.889 trillion (2007 est.)
$2.816 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$3.668 trillion (2008 est.)

GDP - real growth rate

1% (2008 est.)
2.6% (2007 est.)
3.2% (2006 est.)

GDP - per capita (PPP)

$35,400 (2008 est.)
$35,100 (2007 est.)
$34,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 0.9%
industry: 30.1%
services: 69.1% (2008 est.)

Population below poverty line

11% (2001 est.)

Labor force

43.6 million (2008 est.)

Labor force - by occupation

agriculture: 2.4%
industry: 29.7%
services: 67.8% (2005)

Unemployment rate

7.8% (2008 est.)
9% (2007 est.)
note: this is the International Labor Organization's estimated rate for international comparisons; Germany's Federal Employment Office estimated a seasonally adjusted rate of 10.8%

Household income or consumption by percentage share

lowest 10%: 3.2%
highest 10%: 22.1% (2000)

Distribution of family income - Gini index

27 (2006)
30 (1994)

Investment (gross fixed)

19.2% of GDP (2008 est.)

Budget

revenues: $1.591 trillion
expenditures: $1.591 trillion (2008 est.)

Public debt

64.4% of GDP (2008 est.)
65.8% of GDP (2004 est.)

Inflation rate (consumer prices)

2.7% (2008 est.)
2.3% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
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

NA% (31 December 2008)
5.96% (31 December 2007)

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 quasi money

$NA

Stock of domestic credit

$4.359 trillion (31 December 2008)
$4.457 trillion (31 December 2007)

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

0.1% (2008 est.)

Electricity - production

594.7 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 61.8%
hydro: 4.2%
nuclear: 29.9%
other: 4.1% (2001)

Electricity - consumption

549.1 billion kWh (2006 est.)

Electricity - exports

62.31 billion kWh (2007 est.)

Electricity - imports

42.87 billion kWh (2007 est.)

Oil - production

148,100 bbl/day (2007 est.)

Oil - consumption

2.456 million bbl/day (2007 est.)

Oil - imports

3.026 million bbl/day (2005)

Oil - exports

563,400 bbl/day (2005)

Oil - proved reserves

367 million bbl (1 January 2008 est.)

Natural gas - production

17.96 billion cu m (2007 est.)

Natural gas - consumption

97.44 billion cu m (2007 est.)

Natural gas - exports

12.22 billion cu m (2007 est.)

Natural gas - imports

88.35 billion cu m (2007 est.)

Natural gas - proved reserves

254.8 billion cu m (1 January 2008 est.)

Current Account Balance

$243.3 billion (2008 est.)
$263.1 billion (2007 est.)

Agriculture - products

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

Exports

$1.498 trillion (2008 est.)
$1.35 trillion (2007 est.)

Exports - commodities

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

Exports - partners

France 9.7%, US 7.1%, UK 6.7%, Netherlands 6.6%, Italy 6.4%, Austria 5.4%, Belgium 5.2%, Spain 4.4%, Poland 4% (2008)

Imports

$1.232 trillion (2008 est.)
$1.079 trillion (2007 est.)

Imports - commodities

machinery, vehicles, chemicals, foodstuffs, textiles, metals

Imports - partners

Netherlands 12.5%, France 8.3%, Belgium 7.5%, China 6.2%, Italy 5.7%, UK 5.4%, Austria 4.3%, Russia 4.2%, US 4.2% (2008)

Reserves of foreign exchange and gold

$138 billion (31 December 2008 est.)
$136.2 billion (31 December 2007 est.)

Debt - external

$5.25 trillion (31 December 2008)
$5.155 trillion (31 December 2007)

Stock of direct foreign investment - at home

$1.027 trillion (31 December 2008 est.)
$1.002 trillion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.407 trillion (31 December 2008 est.)
$1.249 trillion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$2.106 trillion (31 December 2007)
$1.638 trillion (31 December 2006)

Economic aid - donor

ODA, $10.44 billion (2006)

Currency (code)

EUR

Currency (code)

euro (EUR)

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year