Germany

Capital: Berlin

Local time:
It is %T:%M %A in Berlin

Exchange rate on :

GDP growth rate: 2.0% in 2012

FDI stock: 629 711 million USD in 2007

Country risk: See the country risk analysis from Germany provided by Ducroire.

Economic trends

Germany is Europe's primary economy. Over the last few years, its performance has not been dynamic due to the country's vulneralbility to outside shocks, domestic structural problems and the permanent difficulties of integrating the formerly communist eastern part. Like its European neighbors, Germany was affected by the international financial crisis and its banking system was endangered. A plan of Euros 480 billion to support the banks was approved at the end of 2008 in order to curb the effects of the crisis. In fact, the country was officially in recession during the last quater of 2008.

Main branches of industry

The German agricultural sector contributes about 1% of the GDP and employs about 2,5% of the active population. The sector has greatly benefitted from State subsidies. Main agricultural products are milk, pork and livestock farming, sugar beet and cereals. Consumers prefer organic agriculture. The country is going through a process of deindustrialization of the food sector. 

The contribution of the industrial sector to the GDP has dropped from 51% in 1970 to about 29% today. However, the German economy still has some specialized sectors such as mechanical engineering, electric and electronic equipment, automotive and chemical products. The automotive industry is one of the country's largest industrial sectors, and is the world's 3rd exporter of cars. Nevertheless, the crisis has affected German industry, especially the automotive sector as well as equipment, with a decrease in orders and the implementation of partial unemployment plans.

The tertiary sector contributes about 70% to the GDP. The German economic model relies mainly on a dense network of SMEs; there are more than 3 million of them employing 70% of the salaried workers.

International trade

With exports representing about 40% of GDP and a surplus commercial balance, Germany is a leader in exports. The whole of the European Union is its primary trade partner: 47.8% of German imports and 53.1% of its exports are done with the 15 original members of the EU and 9.8% of imports and 9.3% of exports are done with the new member States.

In this context, where exports represent a large portion of the country's economy, the crisis has strongly affected the country's commercial balance, which was in deficit at the end of 2008 and during 2009.

Learn more

For more information on Germany

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website