Germany is the largest national economy in Europe and ranks fourth among the largest nominal GDP economies in the world. It is also the fifth largest economy in terms of GDP (PPP). Germany is one of the founders of the European Union and the euro area. The country’s economy is based on a social market economy. The country has one of the most qualified workforce in Europe, particularly in its main industries, including car manufacturing, machinery, household equipment and chemicals. Germany is also the 3rd largest European agricultural producer, which enables it to meet 90% of its nutritional needs.
Overview of the economy of Germany
Germany has a GDP of $ 4.0 billion per PPP and a nominal GDP of $ 3.5 billion. Nominal GDP ranks fourth while GDP based on purchasing power parity (PPP) ranks 5. GDP had a positive growth rate of 1.7% in 2015. GDP per capita based on PPP is estimated at $ 48,000 and $ 42,000 per nominal GDP. About 54.1% of GDP is used in household consumption, making it the most important composition of GDP by end users. Services are estimated to contribute 69.1% to GDP, followed by industry at 30.2% and agriculture at 0.7%. Germany has one of the lowest inflation rates of around 0.5%, an unemployment rate of 4.2%. 15.5% of the population lives below the poverty line. The workforce work is made up of millions of people 45 and 73.8% in the service sector, 24.6% in industries and 1.6% in the agricultural sector. Public debt is estimated at 72% of GDP. The turnover of Germany is X billion billion dollars against expenditure of one trillion dollars. The country’s foreign exchange reserves are estimated at one trillion dollars.
Main industries of Germany
Germany is dominated by manufacturing industries, including automotive, chemicals, metals such as iron and steel, electrical equipment, coal, ships, machine tools,
Main export products from Germany
Germany earns around X billion billion dollars from its exports. The main export products include motor vehicles, vehicle parts, aircraft and spacecraft, packaged drugs,
Germany’s main export partners
Germany exports its products to the United States, France, the United Kingdom, China, the Netherlands, Belgium, the Czech Republic, Sweden, Hungary, Italy, Austria, Switzerland and Poland. Germany is the second largest export market in the world.
Main import products from Germany
Germany spends around US $ 1 trillion on imports. The main German imports include machinery, electronic equipment, medical equipment, technical equipment, vehicles and vehicle parts, crude oil, refined petroleum, agricultural products and food products.
Main import partners from Germany
The Netherlands is the leading import partner in Germany at 13.6%, followed by France at 7.6% in China 7.3%, in Belgium, in Italy, in Poland, in the United States, in the Czech Republic, in the United Kingdom. United, Austria and Switzerland. Other import partners include Sweden, Turkey, Spain and Russia.
Challenges to the German economy
The German economy faces problems such as weak population growth which ultimately affects the size of the workforce and increasing public spending on health care for the elderly and pension structures . Low population growth is attributed to low birth rates, especially among those with high education. Other problems include low levels of investment.
Future plans
Germany plans to reduce excessive dependence on nuclear energy for renewable energy sources. The main source of renewable energy he hopes to capitalize on is hydroelectric power. Other plans include the introduction and implementation of social reforms and foreign and local private investment, particularly in infrastructure.