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Introduction - Germany:
Location - Germany:
People - Germany:
Government - Germany:
Economy - Germany:

Economy overview

Germanys affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2006 with 2.2% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth has led to a considerable fall in unemployment to about 7% at the end of 2006. Among the most important reasons for Germanys high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates. 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 $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. 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. Germanys 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 reduced Germanys budget deficit to within the EUs 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could help Germany meet the long-term challenges of European economic integration and globalization.

Gdp purchasing power parity

$2.63 trillion (2006 est.)

Gdp official exchange rate

$2.872 trillion (2006 est.)

Gdp real growth rate

2.7% (2006 est.)

Gdp per capita ppp

$31,900 (2006 est.)

Gdp composition by sector

agriculture: 0.9%
industry: 29.1%
services: 70% (2006 est.)

Labor force

43.66 million (2006 est.)

Labor force by occupation

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

Unemployment rate

note: this is the International Labor Organizations estimated rate for international comparisons; Germanys Federal Employment Office estimated a seasonally adjusted rate of 10.8% (2006 est.)

Population below poverty line

11% (2001 est.)

Household income or consumption by percentage share

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

Distribution of family income gini index

28.3 (2000)

Inflation rate consumer prices

1.7% (2006 est.)

Investment gross fixed

17.3% of GDP (2006 est.)


revenues: $1.277 trillion
expenditures: $1.344 trillion; including capital expenditures of $NA (2006 est.)

Public debt

66.8% of GDP (2006 est.)

Agriculture products

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


among the worlds 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

4.4% (2006 est.)

Electricity production

566.9 billion kWh (2004)

Electricity consumption

524.6 billion kWh (2004)

Electricity exports

50.8 billion kWh (2004)

Electricity imports

48.2 billion kWh (2004)

Oil production

167,400 bbl/day (2004)

Oil consumption

2.65 million bbl/day (2004)

Oil exports

518,700 bbl/day (2004)

Oil imports

2.953 million bbl/day (2004)

Oil proved reserves

394.4 million bbl (1 January 2005)

Natural gas production

19.9 billion cu m (2005 est.)

Natural gas consumption

102 billion cu m (2005 est.)

Natural gas exports

8.81 billion cu m (2004 est.)

Natural gas imports

90.11 billion cu m (2004 est.)

Natural gas proved reserves

279.1 billion cu m (1 January 2005 est.)

Current account balance

$134.8 billion (2006 est.)


$1.133 trillion f.o.b. (2006 est.)

Exports commodities

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

Exports partners

France 9.7%, US 8.6%, UK 7.3%, Italy 6.7%, Netherlands 6.2%, Belgium 5.5%, Austria 5.5%, Spain 4.7% (2006)


$916.4 billion f.o.b. (2006 est.)

Imports commodities

machinery, vehicles, chemicals, foodstuffs, textiles, metals

Imports partners

Netherlands 11.7%, France 8.7%, Belgium 7.6%, UK 5.9%, China 5.9%, Italy 5.5%, US 5.1%, Austria 4.3%, Russia 4% (2006)

Reserves of foreign exchange and gold

$48.76 billion (August 2006 est.)

Economic aid donor

ODA, $5.6 billion (1998)

Debt external

$3.904 trillion (30 June 2006)

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 - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)

Communications - Germany:
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This page was last updated on 16 September, 2007
Source: CIA >>>

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