2. Introduction to Germany
Status of the economy
Export –Import
Industry
Business related major agenda of the
Government
Latest economic and business trend
Conclusion
3. The EU was not always as big as it is today. When European countries started to cooperate
economically in 1951, only Belgium, Germany, France, Italy, Luxembourg and the
Netherlands participated.
Over time, more and more countries decided to join. The union reached its current size of
28 member countries with the accession of Croatia on 1 July 2013.
4. o As Europe's largest economy and second most populous nation (after
Russia), Germany is a key member of the continent's economic, political,
and defense organizations.
o In January 1999, Germany and 10 other EU countries introduced a common
European exchange currency, the euro.
o Geographic climate :
o Location:
o Central Europe, bordering the Baltic Sea and the North Sea, between the
Netherlands and Poland, south of Denmark.
o Total Area is 357,022 sq km.
o Border countries: Austria 801 km, Belgium 133 km, Czech Republic 704 km,
Denmark 140 km, France 418 ,km, Luxembourg 128 km, Netherlands 575
km, Poland 447 km, Switzerland 348 km.
o Strategic location on North European Plain and along the entrance to the
Baltic Sea.
5. In Germany, the average household net-adjusted disposable
income per capita is 30 721 USD a year, more than the OECD
average of 23 938 USD a year. But there is a considerable gap
between the richest and poorest – the top 20% of the population
earn more than four times as much as the bottom 20%.
In terms of employment, some 73% of people aged 15 to 64 in
Germany have a paid job, above the OECD employment average
of 65%. Some 78% of men are in paid work, compared with 68% of
women. People in Germany work 1 397 hours a year, less than
the OECD average of 1 765 hours. Some 6% of employees work
very long hours, lower than the OECD average of 9%, with 8% of
men working very long hours compared with just 2% for women.
OECD:-Organization for Economic co-operation and development
6. The average student scored 515 in reading literacy, maths and science in the
OECD’s Programme for International Student Assessment (PISA). This score is
higher than the OECD average of 497. On average in Germany, girls
outperformed boys by 10 points, more than the average OECD gap of 8 points.
In terms of health, life expectancy at birth in Germany is almost 81 years, one
year higher than the OECD average of 80 years. Life expectancy for women is
83 years, compared with 78 for men.
Germany also does well in terms of water quality, as 94% of people say they
are satisfied with the quality of their water, more than the OECD average of
84%.
In general, Germans are as satisfied with their lives as other OECD citizens,
with 76% of people saying they have more positive experiences in an average
day (feelings of rest, pride in accomplishment, enjoyment, etc.) than negative
ones (pain, worry, sadness, boredom, etc.), in line with the OECD average.
9. GDP: The value of a country’s overall output of goods and services
(typically during one Fiscal year) at market prices excluding net
income from abroad.
GDP PPP world Ranking 5th and Nominal GDP Ranking is 4th .
11. Changes in net reserves (BoP, current US$)
Changes in net reserves is the net change in a country's holdings of international reserves
resulting from transactions on the current, capital, and financial accounts. These include
changes in holdings of monetary gold, SDRs, foreign exchange assets, reserve position in the
International Monetary Fund, and other claims on nonresidents that are available to the
central authority. The measure is net of liabilities constituting foreign authorities' reserves,
and counterpart items for valuation changes and exceptional financing items. Data are in
current U.S. dollars.
12. Trade (% of GDP)
Trade is the sum of exports and imports of goods and services measured as a share of
product.
13. Total reserves (includes gold, current US$)
Total reserves comprise holdings of monetary gold, special drawing rights, reserves of IMF
members held by the IMF, and holdings of foreign exchange under the control of monetary
authorities. The gold component of these reserves is valued at year-end (December 31)
London prices. Data are in current U.S. dollars.
14. Total reserves minus gold (current US$)
Total reserves minus gold comprise special drawing rights, reserves of IMF members held by
the IMF, and holdings of foreign exchange under the control of monetary authorities. Gold
holdings are excluded. Data are in current U.S. dollars.
15. Foreign direct investment, net (BoP, current US$)
Foreign direct investment is net inflows of investment to acquire a lasting management
interest (10 percent or more of voting stock) in an enterprise operating in an economy other
than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-
term capital, and short-term capital as shown in the balance of payments. This series shows
total net, that is, net FDI in the reporting economy from foreign sources less net FDI by the
reporting economy to the rest of the world. Data are in current U.S. dollars.
16. This series shows net inflows (new investment inflows less disinvestment) in the reporting
economy from foreign investors, and is divided by GDP.
17. FDI: This series shows net outflows of investment from the reporting economy to the rest of
the world and is divided by GDP.
18. GDP growth rate
Percentage change of real GDP compared to previous year. Real GDP is adjusted for inflation.
19. GDP per capita (current US$)
GDP per capita is product divided by midyear population. GDP is the sum of gross value
added by all resident producers in the economy plus any product taxes and minus any
subsidies not included in the value of the products. It is calculated without making
deductions for depreciation of fabricated assets or for depletion and degradation of natural
resources. Data are in current U.S. dollars.
20. GNI (current US$)
GNI (formerly GNP) is the sum of value added by all resident producers plus any product
taxes (less subsidies) not included in the valuation of output plus net receipts of primary
income (compensation of employees and property income) from abroad. Data are in
current U.S. dollars.
21. Gross savings (% of GDP)
Gross savings are calculated as gross national income less total consumption, plus net
transfers.
22. Gross savings (current US$)
Gross savings are calculated as gross national income less total consumption, plus net
transfers. Data are in current U.S. dollars.
23. Net taxes on products (current US$)
Net taxes on products (net indirect taxes) are the sum of product taxes less subsidies.
Product taxes are those taxes payable by producers that relate to the production, sale,
purchase or use of the goods and services.
24. Net income from abroad (current US$)
Net income includes the net labor income and net property and entrepreneurial income
components of the SNA. Labor income covers compensation of employees paid to
nonresident workers. Property and entrepreneurial income covers investment income
from the ownership of foreign financial claims (interest, dividends, rent, etc.) and
nonfinancial property income (patents, copyrights, etc.). Data are in current U.S. dollars.
25. Savings (% of GDP)
Savings are calculated as GDP less final consumption expenditure (total consumption).
26. Population in largest city is the urban population living in the country's largest metropolitan
area.
27. Inflation
Inflation as measured by the consumer price index reflects the annual percentage change
in the cost to the average consumer of acquiring a basket of goods and services that may
be fixed or changed at specified intervals, such as yearly.
28. Labor force
The labor force is the supply of labor available for producing goods and services in an
economy. It includes people who are currently employed and people who are unemployed
but seeking work as well as first-time job-seekers.
29. Unemployment
The International Labour Organization (ILO) defines the unemployed as members of the
economically active population who are without work but available for and seeking work,
including people who have lost their jobs or who have voluntarily left who have lost their
jobs or who have voluntarily left work.
30. Tax revenue (% of GDP)
Tax revenue refers to compulsory transfers to the central government for public purposes.
Certain compulsory transfers such as fines, penalties, and most social security contributions
are excluded. Refunds and corrections of erroneously collected tax revenue are treated as
negative revenue.
31. Agriculture
1%
Industry
30%
Service
69%
GDP SECTOR WISE CONTRIBUTION 2013
Agriculture - products:
potatoes, wheat, barley, sugar beets, fruit, cabbages; milk products; cattle, pigs, poultry
Industries:
Among the world's largest and most technologically advanced producers of iron, steel, coal,
cement, chemicals, machinery, vehicles, machine tools, electronics, automobiles,
food and beverages, shipbuilding, textiles
Services: Health, Insurance, transportation and logistics.( Export- 90107 € and Import- 71057 €
32. Business related major agenda of the Government
Competitiveness Rankings (World economic forum Global Competitiveness Index (GCI) )
World Economic Forum; The Global Competitiveness Report 2014-2015; Date of data
collection or release: 3rd September 2014. Rank- 5th among 144 Countries.
33. Latest happening in Germany Economy:
Shifting the tax system from labour towards environmental taxes would improve the pricing
of negative environmental externalities. Reforms to encourage full-time labour force
participation of women, to reduce gaps in employment protection and improve equality in
education outcomes would make growth more inclusive.
Reduce tax wages on labour income and shift taxation towards less distortive
taxes.(Property Tax)
Reduce gaps in employment protection. The large gap in the protection of regular workers
and non-regular workers hampers upward wage mobility and reduces access to training as
well as to high-quality jobs for non-regular workers.
Remove obstacles to full-time female labour participation. The labour force participation of
women is high, but the average working hours of mothers and married women are
significantly below the OECD average.
34. Latest economic and business trend
German economy is doing well, but they would be doing much better
if the rest of the euro zone was doing better.
The euro zone is their biggest export market by a mile.
o Germany not planning for Greek euro exit, says Merkel spokesman
Unemployment at record low in Germany .
o Germany's unemployment rate dropped to a record low of 6.5 per cent(6.6 percent in
November) in December.
o (The German jobless rate fell from 6.6 per cent in November to its lowest since German
reunification in 1990.)
35. Conclusion:
o Germany has rich culture and industrial heritage.
o Germany performs well in many measures of well-being, as shown by the fact that
it ranks among the top ten countries in several topics in the Better Life Index.
o It is a robust economy ( Major contribution to the GDP from
Industrial sector).
o Climatic condition for business prospects is more friendly.
o Playing a major role in binding the EU.
o Germany stands as an economic beacon, with record
employment and the lowest youth unemployment in Europe.
o State of the art transportation, telecommunication infrastructure
,High tech research development lab well trained work force are
attracted investors for business. ( Made-In- German)