Germany

Germany

The light green area is the rest of the European Union

Germany had the fourth-largest economy by nominal GDP in the world in 2018, and the largest in Europe. Germany is third largest exporting country and recorded the highest trade surplus in the world in four recent consecutive years. Germany benefits from a highly skilled labour force and is ranked 11th in the Human Capital Index. Over 99 percent of firms are small and medium enterprises, the "Mittelstand", which are typically larger than the European average, more export orientated, and tend to be family owned. Germany has 29 companies in the top 500 global companies in 2019. In 2019, renewable energy accounted for 46 percent of electricity consumed. Services accounted for 62 percent of GDP in 2018. Manufacturing accounted for 21 percent, which is similar to the level for Japan and close to double the USA's. The leading export sectors are machinery (18.5 percent of exports in 2017), services (17.6 percent), vehicles (17.45 percent), and chemicals (14.95 percent). The largest individual exports are ICT services (9.8 percent), cars (8.8 percent), transport services (3.5 percent), and car parts (3.5 percent). Its leading export partners are the USA (8.7 percent, France (8.2 percent), China (6.75 percent), the UK (6.6 percent), and the Netherlands (6.2 percent). Its biggest goods imports are electrical machinery and equipment (12.7 percent), industrial machinery (12.5 percent), vehicles (10.3 percent), and oil (7.8 percent). Industrialisation progressed rapidly after unification in 1871 as the population grew and urbanised, and the government introduced universal education and welfare. By 1900, Germany had overtaken the UK and the USA in steel production and was growing fast in the new knowledge industries of chemicals and electrical equipment. Post World War 2, West Germany recovered quickly with industry and institutions reorganised, recapitalised, and given a free-trade bias by the US. East Germany was organised as a command economy and decentralised policies saw a growth in industrialisation in the 1960s. Post re-unification the economy struggled in the 1990s as the government pursued fiscal consolidation. Labour market reforms by Chancellor Gerhard Schroeder in the late 1990s led to strong economic growth and falling unemployment in the 2000s. The economy weathered the global financial crisis with a public recapitalisation of banks and tax cuts.

Its population in 2018 was 82,293,457 [1]

In 2015, 14.21% of its total energy
consumption was renewable [2]

In 2021, its GDP grew by 2.89% [2]

In 2021 it had a positive Current
Account Balance of US$bn 313.96 [3]

Its unemployment rate in 2021 was 3.52% [3]

Its Expenditure on R&D (as a percentage of
GDP) in 2020 was 3.14% [2]



What free trade areas or economic unions is it a member of?

Member of the European Union (EU) since 25/03/1957

Other members:

Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden


What trade deals are there between European Union and other countries and economic unions?

EU - Andorra Customs Union (from 01/01/1991)

European Single Market (SM) (from 01/01/1993)

EU - Sri-Lanka Co-operation and Partnership Agreement (from 01/04/1995)

EU - Türkiye Customs Union (from 31/12/1995)

EU - Faroe Islands Agreement (from 01/01/1997)

EU - Palestinian Authority Interim Association Agreement (from 01/07/1997)

EU - Tunisia Association Agreement (from 01/03/1998)

EU - Armenia Partnership and Cooperation Agreement (from 09/09/1999)

EU - Morocco Association Agreement (from 01/03/2000)

EU - Israel Association Agreement (from 01/06/2000)

EU - Mexico Global Agreement (from 01/10/2000)

EU - San Marino Customs Union (from 01/04/2002)

EU - Jordan Association Agreement (from 01/05/2002)

EU - North Macedonia Stabilisation and Association Agreement (from 01/04/2004)

EU - Pakistan Co-operation agreement (from 29/04/2004)

EU - Egypt Association Agreement (from 01/06/2004)

EU - Chile Association Agreement and Additional Protocol (from 01/03/2005)

EU - Algeria Association Agreement (from 01/09/2005)

EU - Lebanon Association Agreement (from 01/04/2006)

EU - Albania Stabilisation and Association Agreement (from 01/04/2009)

EU - Pacific States Interim EPA (from 20/12/2009)

EU - Montenegro Stabilisation and Association Agreement (from 01/05/2010)

EU - Central America Association Agreement (from 01/08/2013)

EU - Serbia Stabilisation and Association Agreement (from 01/09/2013)

EU - Bosnia and Herzegovina Stabilisation and Association Agreement (from 01/06/2015)

EU - South Korea Free Trade Agreement (from 01/07/2015)

EU - Kosovo Stabilisation and Association Agreement (from 01/04/2016)

EU - Georgia Association Agreement (from 01/07/2016)

EU - Moldova Association Agreement (from 01/07/2016)

EU - Canada Comprehensive Economic and Trade Agreement (CETA) (from 21/09/2017)

EU - Eswatini (SADC) Economic Partnership Agreement (from 05/02/2018)

EU - Lesotho (SADC) Economic Partnership Agreement (from 05/02/2018)

EU - Mozambique (SADC) Economic Partnership Agreement (from 05/02/2018)

EU - Namibia (SADC) Economic Partnership Agreement (from 05/02/2018)

EU - South Africa Economic Partnership Agreement (from 05/02/2018)

EU - Botswana (SADC) Economic Partnership Agreement (from 05/02/2018)

EU - Japan Economic Partnership Agreement (from 01/02/2019)

EU - Eastern and Southern Africa States free trade agreement (from 07/02/2019)

UK - EU Trade Deal (from 01/01/2021)

EU: Stage Set for Clash

The Hague is expected to deploy the biggest gun available to EU member states and roll out its veto to derail a Franco-German plan that introduces eurobonds under a different

Europe’s Golden Eleventh Hour

In true EU fashion, a compromise solution is taking shape for member states unable to power up their economy for the post-corona recovery. French president Emmanuel Macron and German chancellor
Read more

No Quick Recovery for Europe

Just before the weekend, Germany nosedived into a recession after the Statistisches Bundesamt, the country’s statistics bureau, announced a 2.2 percent contraction of GDP over the first three months of

Schalke 04 Fighting for Its Life and Soul

Ausgliederung. What wrecked the deep emotional bond between British football fans and their club is now coming to Germany: The privatisation of the beautiful game. Diehard supporters would probably prefer
Read more

Dull but Sound: Ordoliberalism to the Rescue

A hallmark of quality recognised the world over, ‘Made in Germany’ represents a welcome victory of content over hype. The German mindset and constitution, it would seem, are almost incapable

Jim O’Neill: The Return of Fiscal Policy

As we enter the last quarter of 2019 (and of the decade), cyclical indicators point to a slowing world economy amid wide-ranging structural challenges. There are plenty of issues to
Read more

Book Review by Kenneth Rogoff: Crash Time

Crashed: How a Decade of Financial Crises Changed the World by Adam Tooze Ten years after the collapse of Lehman Brothers, Crashed, by the noted Columbia University historian Adam Tooze,

LBBW: Operating Soundly, Making Big Moves and Breaking New Ground

Landesbank Baden-Württemberg (LBBW), a mid-sized universal bank, promises its customers – whether corporate, institutional, or retail, to be by their side wherever they go. With deep roots in Baden-Württemberg, LBBW
Read more

CFI.co Meets the Executive President of CABEI: Dr. Nick Rischbieth

Dr. Nick Rischbieth, Executive President of the Central American Bank for Economic Integration (CABEI), holds a Bachelor’s Degree in Economics from Rice University in Houston, Texas; a Master in Business

Marc Langenbrinck, Mercedes-Benz Schweiz CEO: Finding and Keeping the Exact Right Competitive Angle

Mercedes-Benz is enjoying a great run. Its cars have set new sales records in Switzerland, Spain, Belgium, Portugal, and Poland – and elsewhere. In fact, the iconic German carmaker just
Read more

Trade with the United Kingdom

Source: UK Office for National Statistics, October 2022.

Contains public sector information licensed under the Open Government Licence v3.0.

CFI