Economy

Ranking third in terms of total economic output, Germany is one of the world’s leading nations. In terms of exports, Germany takes first place worldwide. The country continues to be an attractive market for foreign investors, offering a superbly developed infrastructure and a highly motivated, well-qualified work force. Top-notch research and development projects are additional hallmarks of the country.

The social partnership between trade unions and employers ensures a high degree of social harmony. Reforms to the social security system and structural reforms to the labor market are intended to reduce ancillary labor costs and rejuvenating economic growth, which, in comparison with other EU countries, is on a low level.  

Member states of the European Union are Germany's major trading partners, accounting

for rd. 65% of its foreign trade. France retained its number one position as Germany's most important trading partner in 2007, followed by the United States and the United Kingdom.

As reported by the Federal Statistical Office, German exports into Asia account for 11.0% in 2007 followed by the United States with approx. 10.0%. Altogether, German exports rose 15.0% to US$ 1112.0 billion in 2006.

The majority of German imports also came from Europe (72%), followed by Asia (16%) and America (9%). Goods from Africa and Australia / Oceania played just a subordinate role in imports too (2% and 0.3%, respectively).

In 2007 – as in the year before –the top country of destination for German exports was France followed by the United States and the United Kingdom. Germany exported goods worth 93.9 billion euro to France (9.7% of total German exports), 73.4 billion euro to the United States (7.6%) and 71.0 billion euro to the United Kingdom (7.3%).

Most of the goods imported to Germany also originated from France. The countries ranking second and third were the Netherlands and China. Germany imported goods worth 64.9 billion euro from France (8.4% of total German imports), 64.3 billion euro from the Netherlands (8.3%) and 54.6 billion euro from China (7.1%).

For more information, please visit the website of the German Statistical Bureau (www.destatis.de).

Compared with other industrial nations, the German economy has an almost unprecedented international focus. Companies generate almost a third of their profits through exports, and almost one in four jobs are dependent on foreign trade. The high level of international competitiveness is most evident where companies vie with others in the international arena. Traditionally the share of exports expands at a higher than average rate.

In addition, the continuous rise in direct investments by international companies in Germany and by German companies abroad underscores the strong position of the German economy in comparison with its international competitors. It is buttressed at the national level by a favorable inflation rate and unit labor costs as well as by a stable society. 

For more information, please visit the website of the German Bundesbank (www.bundesbank.de).

Quickfacts about the Economy

                                  U.S. usage of billion and trillion (2005 est.)