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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Germany is Europe's primary economy. Over the last few years, its performance has not been dynamic due to the country's vulneralbility to outside shocks, domestic structural problems and the permanent difficulties of integrating the formerly communist eastern part. Like its European neighbors, Germany was affected by the international financial crisis and its banking system was endangered. A plan of Euros 480 billion to support the banks was approved at the end of 2008 in order to curb the effects of the crisis. In fact, the country was officially in recession during the last quater of 2008.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	2,914.99	3,320.91	3,667.51e	3,060.31	3,008.99
GDP (constant prices, annual % change)	3.0	2.5	1.3e	-5.6e	-1.0e
GDP per capita (USD)	35,413	40,392	44,660	37,307e	36,726
General government balance (in % of GDP)	-1.5	-0.5	-0.1	-4.7	-6.1
Inflation rate (%)	1.8	2.3	2.8	0.1	-0.4
Unemployment rate (% of the labor force)	9.8	8.4	7.3	9.0	10.8
Current Account (billions USD)	178.84	250.26	235.26e	71.67e	72.94
Current Account (in % of GDP)	6.1	7.5	6.4	2.3	2.4

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The German agricultural sector contributes about 1% of the GDP and employs about 2,5% of the active population. The sector has greatly benefitted from State subsidies. Main agricultural products are milk, pork and livestock farming, sugar beet and cereals. Consumers prefer organic agriculture. The country is going through a process of deindustrialization of the food sector.

The contribution of the industrial sector to the GDP has dropped from 51% in 1970 to about 29% today. However, the German economy still has some specialized sectors such as mechanical engineering, electric and electronic equipment, automotive and chemical products. The automotive industry is one of the country's largest industrial sectors, and is the world's 3rd exporter of cars. Nevertheless, the crisis has affected German industry, especially the automotive sector as well as equipment, with a decrease in orders and the implementation of partial unemployment plans.

The tertiary sector contributes about 70% to the GDP. The German economic model relies mainly on a dense network of SMEs; there are more than 3 million of them employing 70% of the salaried workers.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	2.4	29.7	67.8
Value added (in % of GDP)	0.9	30.1	69.0
Value added (annual % change)	2.9	4.9	1.9

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	0.81	0.80	0.80	0.73	0.68

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 70.5/100
Position:: mostly free
World Rank:: 25 out of 179
Regional Rank:: 13 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

With exports representing about 40% of GDP and a surplus commercial balance, Germany is a leader in exports. The whole of the European Union is its primary trade partner: 47.8% of German imports and 53.1% of its exports are done with the 15 original members of the EU and 9.8% of imports and 9.3% of exports are done with the new member States.

In this context, where exports represent a large portion of the country's economy, the crisis has strongly affected the country's commercial balance, which was in deficit at the end of 2008 and during 2009.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	602,624	721,727	788,727	934,861	1,075,433
Exports of goods (millions USD)	747,369	907,794	983,068	1,135,725	1,354,119
Imports of services (millions USD)	172,836	195,534	208,335	224,589	259,012
Exports of services (millions USD)	123,661	146,321	163,515	188,218	217,133
Imports of goods and services (annual % change)	5.4	7.2	6.7	11.2	4.8
Exports of goods and services (annual % change)	2.5	10.0	7.1	12.5	7.8
Imports of goods and services (in % of GDP)	31.7	33.3	35.8	39.6	39.7
Exports of goods and services (in % of GDP)	35.6	38.3	40.9	45.1	46.7
Trade Balance (millions USD)	144,744	186,068	194,340	200,864	278,686
Trade Balance (including service) (millions USD)	95,570	136,854	149,520	164,493	236,806
Foreign trade (in % of GDP)	67.3	71.7	76.7	84.7	86.4

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
France	9.7%
United States	7.2%
United Kingdom	6.7%
Netherlands	6.6%
Italy	6.4%
Austria	5.4%
Belgium	5.2%
Spain	4.4%
Poland	4.0%
Switzerland	4.0%
China	3.4%
Russia	3.2%
Czech Republic	2.8%
Sweden	2.1%
Hungary	1.8%
Denmark	1.6%
Turkey	1.5%
Japan	1.3%
Finland	1.0%
Slovakia	0.9%
See more countries	63.3%

Main suppliers (% of imports)	2008
Netherlands	8.8%
France	8.2%
China	7.2%
Italy	5.6%
United States	5.6%
United Kingdom	5.4%
Belgium	4.9%
Russia	4.4%
Austria	4.0%
Switzerland	3.8%
Czech Republic	3.5%
Poland	3.2%
Japan	2.8%
Norway	2.7%
Spain	2.7%
Hungary	2.2%
Ireland	2.0%
Sweden	1.7%
Denmark	1.5%
Turkey	1.2%
See more countries	64.6%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	18.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	15.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.6%
Plastics and articles thereofPlastics and articles thereof	4.4%
Pharmaceutical productsPharmaceutical products	4.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.8%
Iron and steelIron and steel	2.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	2.6%
Organic chemicalsOrganic chemicals	2.4%
Articles of iron or steelArticles of iron or steel	2.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.7%
Miscellaneous chemical productsMiscellaneous chemical products	1.5%
Aluminium and articles thereofAluminium and articles thereof	1.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.1%
Copper and articles thereofCopper and articles thereof	1.0%
Rubber and articles thereofRubber and articles thereof	1.0%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.7%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.6%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.6%
Meat and edible meat offalMeat and edible meat offal	0.6%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.5%
Glass and glasswareGlass and glassware	0.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Ships, boats and floating structuresShips, boats and floating structures	0.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Ceramic productsCeramic products	0.3%
FertilizersFertilizers	0.3%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
CerealsCereals	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Man-made filamentsMan-made filaments	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Nickel and articles thereofNickel and articles thereof	0.1%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.1%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.1%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
See more products	47.9%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	13.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	12.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	7.7%
Pharmaceutical productsPharmaceutical products	3.7%
Iron and steelIron and steel	3.4%
Plastics and articles thereofPlastics and articles thereof	3.0%
Organic chemicalsOrganic chemicals	2.7%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.0%
Articles of iron or steelArticles of iron or steel	1.8%
Aluminium and articles thereofAluminium and articles thereof	1.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Rubber and articles thereofRubber and articles thereof	1.1%
Copper and articles thereofCopper and articles thereof	1.1%
Ores, slag and ashOres, slag and ash	0.8%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.7%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.7%
Ships, boats and floating structuresShips, boats and floating structures	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.6%
Meat and edible meat offalMeat and edible meat offal	0.6%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Glass and glasswareGlass and glassware	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.4%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
CerealsCereals	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Ceramic productsCeramic products	0.2%
Nickel and articles thereofNickel and articles thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
FertilizersFertilizers	0.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Man-made filamentsMan-made filaments	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Live animalsLive animals	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
CottonCotton	0.1%
See more products	53.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Ministry of the Economy and Technology
Ministry of Cooperation and Development
Ministry of Food, Agriculture and Consumer Protection
Ministry of Transport, Building and Urban Affairs
Ministry of Culture and Research
Statistical Office: Federal Statistical Office
Central Bank: Deutsche Bundesbank
Stock Exchange: Deutsche Börse Group
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Web.de
Economic portals: German business portal

Political outline

Executive Power: The Head of government is the Chancellor, who is elected by absolute majority in the Federal Assembly for a four year term.The Chancellor holds the executive power, which includes implementing the law and managing the everyday business of the country. The Federal Ministers (Council of Ministers) are appointed by the president on the recommendation of the Chancellor.

The Head of State is the President. He is elected for a five year term by the Federal Convention (which includes the members of the Federal Assembly and an equal number of delegates elected by the provincial legislatures). The role of the president is mainly ceremonial.
Legislative Power: The legislative power in Germany is bicameral. The parliament is made up of two houses: the Federal Assembly (the lower house), with 613 seats, whose members are elected by universal suffrage combining proportional and direct representation, for a four year term. And the Federal Council (upper house), with 69 seats, whose members are delegates from the 16 provinces of the country for a 4 year term. There are no elections for the Federal Council. Its composition is determined by that of the provincial governments. The government depends directly or indirectly on the support of parliament, generally expressed by a vote of confidence. The Chancellor cannot dissolve parliament directly, but he can recommend its dissolution to the president if there is a vote of no confidence within the Federal Assembly. Legislative power belongs both to the government and the parliament. German citizens enjoy considerable political rights.
Main political parties: - Christian Democratic Union (CDU): conservatives
- Christian-Social Union (CSU): conservatives
- Social Democratic Party (SPD): social democrats
- Free Democratic Party (FDP): liberals
- Bündnis90/die Gruenen: left/green
Current political leaders: President : Horst KOEHLER (CDU) since July 2004 (re-elected in May 2009).
Chancellor : Angela MERKEL (since November 2005) CDU, head of a coalition backed by the CSU and the SPD.
Next election dates: Chancellor: November 2009
Federal Assembly: September 2009

Indicator of freedom of the press

World Rank:: 20/173
Evolution:: Same rank in relation to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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