Capital City: Berlin
	It is %T:%M %A in Berlin

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Economic trends

Germany is the world's 3rd largest economy and the largest in Europe. However, its performance in the recent years has not been dynamic, reasons being country’s vulnerability to external shocks, domestic structural problems, and continued difficulties in integrating the formerly communist east. The GDP growth rate was 2.9% in 2006, 2.4% in 2007 and is forecasted to reach 2,0% in 2008 due to weak domestic consumption and low investments. The new coalition government headed by the chancellor Angela Merkel has a large parliamentary majority and is expected to pass some reforms on corporate taxation and healthcare. The government deficit is likely to decline as a result of revenue-raising measures. . However, unemployment remains high at about 8%. Germans often describe their economic system as a "social market economy” - providing an array of social services while encouraging competition and free-enterprise.

Main branches of industry

German agricultural sector contributes nearly 1% to the GDP and employs about 3% of the active population. The sector is widely benefited from the State subsidies. The main agricultural productions are milk, pig & cattle breeding, sugar beat and cereals. Organic agriculture is getting more preference these days. The country is undergoing a process of de-industrialization. The contribution of industrial sector to the German GDP has gone down from 51% in 1970 to nearly 29% today. However, German economy still has certain specialised sectors like mechanical engineering, electrical and electronics, automobiles, and chemical. The automobile industry is one of the largest industrial sectors in the country - 3rd largest car exporter in the world. The services sector contributes nearly 70% to the GDP. The German economic model relies on the small scale sector having more than 3 million SMEs which employ 70% of the wage-earners.

International trade

The German economy is heavily export-oriented. The share of foreign trade in country’s GDP is more than 70%. Germany is a strong advocate of closer European economic integration and constitutes 30% of Euro zone GDP. Its top three export partners are: France, the USA, and United Kingdom. The commodities mainly exported are machinery, vehicles, electric & electronic equipment, and plastics. The top three import partners are: France, the Netherlands, and the USA. Germany mainly imports machinery, electric & electronic equipment, mineral fuels & oils, and vehicles.