Germany has the largest economy in Europe based on GDP. It transformed from a largely rural economy in the 1800s to a modern industrial powerhouse by 1900, led by heavy industries. Today, Germany excels in automobiles, machinery, chemicals and electrical equipment and has a highly skilled labor force and focus on innovation. While Germany faces challenges like an aging population and dependence on exports, it has a strong economy based on principles of social market economy, investment in infrastructure and education, and a culture of transparency and low corruption.

1. ECONOMIC GROWTH OF
GERMANY
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2. HISTORY OF GERMANY
• Germany before 1800 was heavily rural, with some urban trade
centres.
• In 19th century it began the stage of rapid economic growth and
modernization, led by heavy industries.
• By 1900 it became the largest economy of Europe.
• West Germany became an “economic miracle” in the 1950s and
1960s with the help of Marshall’s plan.
• In Germany the industrial revolution began 100 years ahead of
Britain.

3. INTRODUCTION TO GERMANY’S
ECONOMY
• Germany is the largest economy in Europe.
• It is the forth largest economy in the world by nominal GDP and the fifth largest by GDP(PPP).
• The country is a founding member of the European union and the Eurozone.
• The socio-economic policy of Germany is based on the concept social market economy.
• German economy is the third most complex economy according to economic complexity index.

4. NORMAL FACTS
1. As of January 2022 the unemployment rate was 5.3%.
2. As of October 2022 the inflation rate was 10.4%.
3. Freedom from corruption is 89% and increasing.
4. Nominal GDP is $4.03 Trillion.
5. GDP(PPP) is $5.32 Trillion.
6. GDP growth rate is 1.2%.
7. Average gross salary is €4168 monthly in 2021.

5. BASIC ASPECTS OF GERMAN
ECONOMY

6. INDUSTRIES
• Of the world’s 500 largest stock-market-listed companies measured by
revenue in 2022, the Fortune Global 500, 17 are headquartered in
Germany. Well-known global brands are SAP , Mercedes-benz ,
BMW.
• Germany excels in production of automobiles, machinery, chemicals
and electrical equipments. With the production of 3.3 million
automobiles in 2021, Germany was the sixth largest producer of
automobiles.

8. SERVICE SECTOR
• In 2017 services constituted 68.6% of gross domestic product (GDP).
• The subcomponents of services are financial, renting, and business
activities (30.5%); trade, hotels and restaurants, and transport (16.4%);
and other service activities (21.7%).
• Germans were the first to bring insurance policies.

9. EXPORT AND IMPORT OF GERMANY
• Germany is the third largest export and import economy in the world
.
• Germany is the largest exporter of automobiles in the world.
• It is the largest capital exporter in the world.
• In 2021 Germany exported €1.37T and imported €1.20T , resulting
in positive trade balance of €173.3B.
• The top exports of Germany are Machinery including
computers($268.6B), Vehicle ($246B), Electrical
machinery($176.4B), Pharmaceuticals ($118B) and Medical apparatus
($83.2B).

10. EDUCATION
• Germany has one of the highest levels of upper secondary attainment.
• 86% of the country’s 25-64 year-olds have obtained at least an upper
secondary qualification.
• Germany is one of the top most preferred higher education
destination in the world.

11. INFRASTRUCTURE
• Germany boasts a highly developed infrastructure with dynamic growth.
• The railroad network is approx. 41,000 kilometres long, and there are 230,000 kilometres of roads.
• The country has one of the world’s most modern telephone and communications networks.
• Germany is the fifth largest consumer of energy in the world. It is the highest consumer of electricity in
Europe, 512.9 terawatts-hour.
• With its central position in Europe, Germany is an important transportation hub.

12. FINANCIAL CRISIS
• The German economy practically stagnated in the beginning of the 2000s.
• The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%) and in
2005 (+1.4%).
• Unemployment was also chronically high. Due to these problems, together with
Germany’s aging population, the welfare system came under considerable
strain.
• This led the government to push through a wide-ranging programme of belt-
tightening reforms, Agenda 2010, including the labour market reforms known
as Hartz I – IV.

13. INDIA VS GERMANY
• According to Economic complexity index the ECI value of Germany in 2018 is 2.09 making it the
fourth most complex economy.
• The ECI rank of India is 42 with the value of 0.54
AGRICULTURE SERVICE INDUSTRY
INDIA 16.38% 54.27% 29.34%
GERMANY 0.7% 68.6% 30.7%

14. BUSINESS FREEDOM

15. INVESTMENT FREEDOM

16. FREEDOM FROM CORRUPTION

17. OVERVIE
W

18. STRENGTH
• High innovation rates/ skilled labour
• Strong export
• Price stability, low inflation
• High investments in research and development
• Low debts, high savings
• Transparent and anti-corrupt system.

19. WEAKNESS
• Few natural resources.
• High dependence on external market.
• Dependence on energy and oil supply.