Germany has its socia market economy that is characterized by a highly qualified labour force, a developed infrastructure, large capital stock, low level of corruption and a high level of innovation . It has the largest national economy in Europe, the fourth largest by nominal GDP in the world, and ranked fifth by GDP (PPP) in 2008 Since the age of industrialization, Germany was the world’s largest exporter from year 2003 to 2008. That tag was overtaken by China in 2009 and is currently the second largest exporter and generates a large trade surplus service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9% Engineered in automobiles, machinery, metals, and chemical goods. Germany is the major producer of wind turbines and solar power technology in the world.
Frankfurt also called as financial global city, seat of the European Central Bank, and an international aviation hub.
Out Of world’s 500 largest stock market listed companies measured by revenue most of them are german based. In 2007 the ten largest were Daimler, Volkswagen, Allianz (the most profitable company), Siemens, Deutsche Bank (2nd most profitable company), E.ON, Deutsche Post, Deutsche Telekom, Metro, and BASF Among the largest employers are also Deutsche Post, Robert Bosch GmbH, and Edeka. Well known global brands are Mercedes Benz, SAP, BMW, Adidas, Audi, Porsche, Volkswagen, and Nivea[
BASF factory in Ludwigshafen is a part of the largest chemical company in the world.
.20 years after German reunification, standards of living and per capita incomes remain significantly higher in the states of the former West Germany compared to former East. The overall unemployment rate has consistently fallen since 2005 and reached a 15-year low in June 2008 with 7.5%. In 2009 the unemployment rate was 8% in the whole of Germany; in the former West Germany it was half the rate compared to the east.
Germany has largest population in the European Union with about 81.8 inhabitants in January, 2010. German economy attracts millions of immigrants from around the world being the 3rd largest country in terms of immigration. Germany is bordered by Poland , Czech Republic, Austria, Switzerland, France and Netherland. The land area is around 357,021 square kilometers and has also maintained a high standard of living. Germany is also known because of well established social security system which is due to flourishing German economy.
German economy ranks 4th in terms of nominal GDP and 5th in terms of purchasing power all over the world. Germany is the world’s second largest trader in terms of both imports and exports. Germany is also being the hub of global scientific and technological developments.
Germany economy :profile
Germany is the largest economy in the European Union due to large pool of talented work force that has enabled Germany to dominate the vehicles, machinery, chemicals and household equipment vertical across the globe.
Germany is under high-income OECD group economies by the classification made by the World Bank on the basis of income and region year 2006.
Germany is not only the largest economy in the European economy, but also one among the most developed and industrialized economies all over the world. The economic system of the country is of “Social Market Economy” structure. The services sector contributes a lot to the country’s GDP followed by the industrial sector. Presently the country is a member of the European Union, World Trade Organization and Organization for Economic Cooperation and Development.
Germany economic structure: primary sector
Agriculture is the source of food resources for Germany for long. The country has been self sufficient in reducing its food imports. The country has also focused on contributing towards a better balance of trade. Germany agriculture contributes almost 0.9% to GDP and engages 2.4% of the work force.
Germany Economic Structure: Secondary Sector
Industries especially the automobiles and precision machinery has been the major products of German industrial products. With such a huge demand, automation has been included for cost benefits. Even with automated processes, the industrial sector employs over 29.7% of the work force and contributes almost 27.1% of the GDP.
Germany Economic Structure: Tertiary Sector
Having reigned all over the world through its industrial products, Germany has made a transition or shift to a more service sector based economy. The service sector remains the biggest employer for the highly efficient German workforce. It is also a major contributor to the national GDP. Out of the total workforce of 43.51 million people; according to the 2009 estimates, the service sector employs 67.8% of the work force..
Like various other political systems of the different countries, the German one has its pros and cons. Its greatest strength: – a deliberate feature of the post-war constitution – is the consensual nature of its decision-making processes. The Bundesrat serves as a control mechanism on the Bundestag. Since the legislative and the executive are so closely connected to the judiciary functions in the parliamentary system, the Bundesrat’s ability to reestablish and slow down legislative processes could be seen as making up for that loss of separation that happened during the war.
On the other hand, it can be debated that the political system makes decision-making vague. Some claim that the opposing any of the majorities in the two chambers lead to increase in dirty politics where small groups of high-level leaders make all the important decisions and then the Bundestag representatives only have a choice between agreeing or disagreeing.