Economic overview Germany, in 36 editions.

The newly unified German Federal Republic of Germany is making substantial progress in
integrating and modernizing eastern Germany, but at a heavy economic cost.
Western Germany's growth in 1991 slowed to 3.1% - the lowest rate since 1987
- because of slack world growth and higher interest rates and taxes required
by the unification process. While western Germany's economy presents was in recession
in the last half of 1991, eastern Germany's economy bottomed out after a starkly contrasting picture.
nearly two-year freefall and shows signs of recovery, particularly in the
construction, transportation, and service sectors. Eastern Germany could
begin a fragile recovery later, concentrated in 1992 in construction,
transportation, and services. The two regions remain vastly different,
however, despite eastern Germany's progress. Western Germany has an advanced
market economy and is a leading exporter. It experienced faster-than-projected real growth largely because of demand world leader in eastern Germany for western German goods. Western Germany exports. It has a highly urbanized
and skilled population which that enjoys excellent living standards, abundant
leisure time, and comprehensive social welfare benefits. Western Germany is
relatively poor in natural resources, coal being the most important mineral.
Western Germany's world-class companies manufacture technologically advanced
goods. The region's economy is mature: manufacturing services and service industries manufacturing account
for the dominant share of economic activity, and raw materials and
semimanufactured products goods constitute a large proportion portion of imports. In 1989 recent
years, manufacturing has accounted for about 31% of GDP, with other sectors
contributing lesser amounts. In recent years, gross Gross fixed investment has in 1990 accounted for
about 21% of GDP. In 1990 1991, GDP in the western region was an estimated $16,300
$19,200 per capita. In contrast, eastern Germany's economy is shedding the
obsolete command economy, once dominated by smokestack heavy industries, has been undergoing a wrenching change to a market economy. Industrial production in early 1991 is down 50% from industries that dominated the same period last year, due largely to economy during the slump in domestic demand Communist
era. Eastern Germany's share of all-German GDP is only about 7%, and eastern
productivity is just 30% that of the west. The privatization agency for
eastern German-made goods and Germany, the ongoing economic restructuring. Treuhand, is rapidly selling many of the 11,500 firms
under its control. The FRG's legal, social welfare, and economic systems have been extended pace of private investment is starting to the east, pick up,
but economic restructuring--privatizing industry, establishing clear questions about property rights, clarifying responsibility for environmental clean-up, rights and removing Communist-era holdovers from management--is proceeding slowly so far, deterring outside investors. The region is environmental liabilities remain.
Eastern Germany has one of the world's largest producers reserves of low-grade lignite coal,
coal but has few other little else in the way of mineral resources. The quality of
statistics from eastern Germany remains poor; Bonn is still trying to bring statistics improving, yet many gaps remain; the
federal government began producing all-German data for select economic
statistics at the region in line with West German practices. start of 1992. The most challenging economic problem of a united Germany is the reconstruction of
promoting eastern Germany's economy--specifically, economic reconstruction - specifically, finding
the right mix of fiscal, regulatory, monetary, regulatory, and tax policies that will
spur investment in the east eastern Germany - without derailing destabilizing western Germany's healthy
economy or damaging relations with Western West European partners. The biggest
danger is that soaring unemployment in eastern Germany, which excessive wage settlements and heavy federal borrowing could climb to
fuel inflation and prompt the 30 German Central Bank, the Bundesbank, to 40% range, could touch keep a
tight monetary policy to choke off labor disputes or renewed mass relocation a wage-price spiral. Meanwhile, the FRG
has been providing billions of dollars to western Germany help the former Soviet republics
and erode investor confidence in eastern Germany. Overall economic activity grew an estimated 4.6% in western Germany in 1990, while dropping roughly 15% in eastern Germany. Per capita GDP in the eastern region was approximately $8,700 in 1990. reformist economies of Eastern Europe.

The Federal Republic With the collapse of Germany is making substantial progress communism in Eastern Europe in 1989, prospects seemed
integrating and modernizing eastern Germany, but at bright for a heavy economic cost. fairly rapid incorporation of East Germany into the highly
Western Germany's growth in 1991 slowed successful West German economy. The Federal Republic, however, continues to 3.1% - the lowest rate since 1987
- because of slack world growth experience difficulties in integrating and higher interest rates modernizing eastern Germany, and taxes required
by the tremendous costs of unification process. While have sunk western Germany's economy was in recession Germany deeper into
recession. The western German economy grew by less than 1% in 1992 as the last half of 1991, eastern Germany's economy bottomed out after a
nearly two-year freefall and shows signs of recovery, particularly in Bundesbank set high interest rates to offset the inflationary effects of
construction, transportation, large government deficits and service sectors. high wage settlements. Eastern Germany could grew by
begin a fragile recovery later, concentrated 6.8% in 1992 but this was from a shrunken base. Despite government transfers
to the east amounting to nearly $110 billion annually, a self-sustaining
economy in construction, the region is still some years away. The bright spots are eastern
Germany's construction, transportation, telecommunications, and services. The two regions remain vastly different, service
however, despite eastern Germany's progress. sectors, which have experienced strong growth. Western Germany has an advanced
advanced market economy and is a world leader in exports. It has a highly urbanized
urbanized and skilled population that enjoys excellent living standards, abundant
abundant leisure time, and comprehensive social welfare benefits. Western
Germany is
relatively poor in natural resources, coal being the most
important mineral.
Western Germany's world-class companies manufacture
technologically advanced
goods. The region's economy is mature: services and
manufacturing account
for the dominant share of economic activity, and raw
materials and
semimanufactured goods constitute a large portion of imports.
In recent
years, manufacturing has accounted for about 31% of GDP, with
other sectors
contributing lesser amounts. Gross fixed investment in 1990 1992
accounted for
about 21% 21.5% of GDP. In 1991, GDP in the western region was an estimated is now $20,000
$19,200 per capita. In contrast, eastern capita, or 85% of US per capita GDP. Eastern Germany's economy appears
to be changing from one anchored on manufacturing into a more
service-oriented economy. The German government, however, is shedding the intent on
obsolete heavy industries that dominated the economy during maintaining a manufacturing base in the Communist east and is considering a policy for
era. subsidizing industrial cores in the region. Eastern Germany's share of
all-German GDP is only about 7%, 7% and eastern
productivity is just 30% that of the west.
west even though eastern wages are at roughly 70% of western levels. The
privatization agency for
eastern Germany, the Treuhand, is rapidly selling many has privatized more than
four-fifths of the 11,500 almost 12,000 firms
under its control. The pace of private control and will likely
wind down operations in 1994. Private investment is starting in the region continues to pick up,
but questions about property rights and environmental liabilities remain. be lackluster, resulting primarily from the deepening recession in western
Germany and excessively high eastern wages. Eastern Germany has one of the
world's largest reserves of low-grade lignite
coal but little else in the
way of mineral resources. The quality of
statistics from eastern Germany is
improving, yet many gaps remain; the
federal government began producing
all-German data for select economic
statistics at the start of 1992. The
most challenging economic problem is
promoting eastern Germany's economic
reconstruction - specifically, finding
the right mix of fiscal, monetary,
regulatory, and tax policies that will
spur investment in eastern Germany -
without destabilizing western Germany's
economy or damaging relations with
West European partners. The biggest
danger is that excessive wage settlements and heavy federal borrowing could government hopes a "solidarity pact" among labor
fuel inflation unions, business, state governments, and prompt the German Central Bank, SPD opposition will provide the Bundesbank, to keep a
tight monetary policy right mix of wage restraints, investment incentives, and spending cuts to choke off a wage-price spiral. Meanwhile, the FRG
has been providing billions stimulate eastern recovery. Finally, the homogeneity of dollars to help the former Soviet republics German economic
and culture has been changed by the reformist economies admission of Eastern Europe. large numbers of immigrants.

With the collapse of communism in Eastern Europe in 1989, prospects seemed
seemed bright for a fairly rapid incorporation of East Germany into
the highly
successful West German economy. The Federal Republic,
however, continues to
experience difficulties in integrating and
modernizing eastern Germany, and
the tremendous costs of unification have sunk
pushed western Germany deeper into its deepest recession since World War II.
recession. The western German economy grew shrank by less than 1% 1.9% in 1992 1993 as the
Bundesbank set
maintained high interest rates to offset the inflationary effects of
large government deficits and high wage settlements. Eastern Germany
grew by
6.8% 7.1% in 1992 1993 but this was from a shrunken base. Despite
government transfers
to the east amounting to nearly $110 billion
annually, a self-sustaining
economy in the region is still some years
away. The bright spots are eastern
Germany's construction,
transportation, telecommunications, and service
sectors, which have
experienced strong growth. Western Germany has an
advanced market
economy and is a world leader in exports. It has a highly
urbanized
and skilled population that enjoys excellent living standards,
abundant leisure time, and comprehensive social welfare benefits. Western
Western Germany is relatively poor in natural resources, coal being
the most
important mineral. Western Germany's world-class companies manufacture
manufacture technologically advanced goods. The region's economy is
mature: services and
manufacturing account for the dominant share of
economic activity, and raw
materials and semimanufactured goods
constitute a large portion of imports.
In recent years, manufacturing
has accounted for about 31% of GDP, with
other sectors contributing
lesser amounts. Gross fixed investment in 1992
1993 accounted for about 21.5%
20.5% of GDP. GDP in the western region is now $20,000
$19,400 per capita, or 85%
78% of US per capita GDP. Eastern Germany's economy appears
to be
changing from one anchored on manufacturing into a more
service-oriented economy. The German government, however, is intent on
maintaining a manufacturing base in the east and is considering a
policy for
subsidizing industrial cores in the region. Eastern
Germany's share of
all-German GDP is only 7% 8% and eastern productivity
is just 30% that of the
west even though eastern wages are at roughly
70% of western levels. The
privatization agency for eastern Germany,
Treuhand, has privatized more than
four-fifths 90% of the almost 12,000 13,000 firms under its
control and will likely
wind down operations in 1994. Private
investment in the region continues to
be lackluster, resulting
primarily from the deepening recession in western
Germany and
excessively high eastern wages. Eastern Germany has one of the
world's
largest reserves of low-grade lignite coal but little else in the
way
of mineral resources. The quality of statistics from eastern Germany is
is improving, yet many gaps remain; the federal government began producing
producing all-German data for select economic statistics at the start
of 1992. The
most challenging economic problem is promoting eastern
Germany's economic
reconstruction - specifically, finding the right
mix of fiscal, monetary,
regulatory, and tax policies that will spur
investment in eastern Germany -
without destabilizing western
Germany's economy or damaging relations with
West European partners.
The government hopes a "solidarity pact" among labor
unions, business,
state governments, and the SPD opposition will provide the
right mix
of wage restraints, investment incentives, and spending cuts to
stimulate eastern recovery. Finally, the homogeneity of the German economic
economic culture has been changed by the admission of large numbers of
immigrants.

Germany, the world's third-most powerful
economy, faces its own unique problem of bringing its eastern area
is gearing up to scratch after 45 years of communist rule. Despite substantial for the European Economic and Monetary Union in 1999.
progress toward One key economic integration, priority is meeting the eastern states will Maastricht criteria for entry
continue to rely on subsidies from the federal government into the
next century. Assistance to the east of about $100 billion annually
has helped the region average nearly 8% annual economic growth since
1991, even though the overall German economy has averaged less than EMU, a goal complicated by record unemployment and stagnating
2% growth. The economic recovery in the east government has been led by the implemented an austerity budget in its
construction industries, with growth increasingly supported by attempt to get the
service sectors and light manufacturing industries. Western Germany,
which accounts for 90% deficit down to 3% of overall German GDP and has three times the as required by
per capita income of eastern Germany, Maastricht, but further cuts probably will be necessary and there is perennially the first- or
second-largest exporter, after the US, in little consensus among the world. Nonetheless, parties or elites about next steps toward
that end. In recent years business and political leaders have in recent years become
increasingly concerned about Germany's apparent decline in
attractiveness as a business location. They cite the increasing
preference of German companies to locate new manufacturing facilities -
- long the strength of the postwar economy - to in foreign countries,
including the US, rather than in Germany, so they can be closer to
their markets and avoid Germany's high production taxes and labor costs. The At the
conditions under which European economic integration - especially same time, Germany faces its own unique problem of bringing its
movement eastern area up to scratch after 45 years of communist rule. Despite
substantial progress toward a single European currency - will proceed economic integration, the eastern states
will be continue to rely on the annual subsidy of approximately $100
another key issue facing Germany in billion from the western part into the next few years. century. Assistance from
the west helped the east to average nearly 8% annual economic growth
in 1992-95, even though the overall German economy had averaged less
than 2% growth; growth in the east, however, tumbled to 2% in 1996,
with unemployment a particularly severe problem.

Germany possesses the world's third most technologically powerful economy after the US and Japan, but its basic capitalistic economy has started to struggle under the burden of generous social benefits. Structural structural market rigidities - like a high rate including the substantial non-wage costs of social contributions on wages hiring new workers - have made unemployment a long-term, not just a cyclical, problem, while problem. Germany's aging population population, combined with high unemployment, has pushed social security outlays to exceed a level exceeding contributions from workers. The integration modernization and upgrading integration of the eastern German economy remains a costly long-term problem, with annual transfers from the west western Germany amounting to roughly $100 $70 billion. Growth slowed picked up to 1.5% 3% in 1999, 2000, largely due to lower export demand and still-low business confidence. Recovering Asian demand, a push for fiscal consolidation, and recovering global demand; newly proposed passed business and income tax cuts - if passed - are expected to boost keep growth back to trend rates around 2.5% strong in 2000 2001. Corporate restructuring and beyond. The adoption growing capital markets are transforming the German economy to meet the challenges of a common European currency and the general political and economic integration of Europe will bring major changes to the German economy and globalization in the early 21st century. general.

Germany's affluent and technologically powerful economy has turned in a relatively weak performance throughout much of the 1990s. 1990s and early 2000s. The modernization and integration of the eastern German economy continues to be a costly long-term problem, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Business and income tax cuts introduced in 2001 did not spare Germany from the impact of the downturn in international trade, and domestic demand faltered as unemployment began to rise. Growth in 2002 again and 2003 fell short of 1%. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. In the short run, however, the fall in government revenues and the rise in expenditures has brought have raised the deficit close to above the EU's 3% debt limit.

Germany's affluent and technologically powerful economy- the fifth largest national economy has turned in a weak performance throughout much the world - has become one of the 1990s slowest growing economies in the entire euro zone, and early 2000s. a quick turnaround is not in the offing in the foreseeable future. Growth in 2001-03 fell short of 1%. The modernization and integration of the eastern German economy continues to be a costly long-term problem, process, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Growth in 2002 and 2003 fell short of 1%. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. The government is also starting long-needed structural reforms designed to revitalize the country's economy. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit.

Germany's affluent and technologically powerful economy- economy - the fifth largest national economy in the world - has become one of the slowest growing economies in the entire euro zone, and a zone. A quick turnaround is not in the offing in the foreseeable future. Growth in 2001-03 fell short of 1%. 1%, rising to 1.7% in 2004. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing aging population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. The government is also starting long-needed structural reforms designed to revitalize the country's economy. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit.

Germany's affluent and technologically powerful economy - the fifth largest in the world - has become one of the slowest growing economies in the euro zone. A quick turnaround is not in the offing in the foreseeable future. Growth in 2001-03 fell short of 1%, rising to 1.7% in 2004. 2004 before falling back to 0.9% in 2005. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion. Germany's aging population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit.

Germany's affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2006 with 2.2% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth has become one led to a considerable fall in unemployment to about 7% at the end of 2006. Among the slowest growing economies in most important reasons for Germany's high unemployment during the euro zone. A quick turnaround is not in past decade were macroeconomic stagnation, the offing declining level of investment in the foreseeable future. Growth plant and equipment, company restructuring, flat domestic consumption, structural rigidities in 2001-03 fell short the labor market, lack of 1%, rising to 1.7% in 2004 before falling back to 0.9% competition in 2005. the service sector, and high interest rates. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions contributions, but higher government revenues from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and cyclical upturn in 2006 reduced Germany's budget deficit to within the setting of wages on a national basis - have made unemployment a chronic problem. EU's 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could allow help Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit. globalization.

Germany's affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2006 2007 with 2.2% 2.6% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth has led to a considerable fall in unemployment to about 7% at 8% near the end of 2006. 2007. Among the most important reasons for Germany's high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006 reduced 2006-07 and a 3% rise in the value-added tax pushed Germany's budget deficit to within well below the EU's 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could help Germany meet the long-term challenges of European economic integration and globalization. globalization, although some economists continue to argue the need for change in inflexible labor and services markets. Growth may fall below 2% in 2008 as the strong euro, high oil prices, tighter credit markets, and slowing growth abroad take their toll.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. The modernization and integration of the eastern German economy - where unemployment can exceed 20% in some municipalities - continues to be a costly long-term process, with annual transfers from west to east amounting in 2008 alone to roughly $12 billion. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment, which in 2008 reached a new post-reunification low of 7.8%. unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its healthy decrease to 7.4% in 2010. GDP contracted nearly 5% 4.7% in 2009 but grew by 3.3% 3.6% in 2010. Germany crept out In its annual projection for 2011, the Federal Government expects the upswing to continue, with GDP forecast to grow this year at a real rate of recession thanks largely 2.3%. The recovery was attributable primarily to rebounding manufacturing orders and exports - primarily increasingly outside the Euro Zone - and relatively steady consumer demand. Zone. Domestic demand, however, is becoming more significant driver of Germany's economic expansion. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2009 and to 3.6% in 2010. The EU has given Germany until 2013 to get its consolidated budget Bundesbank expects the deficit to drop to about 2.5% in 2011, below the EU's 3% of GDP. limit. A new constitutional amendment approved in 2009 likewise limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its western Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. The modernization and integration of the eastern German economy - where unemployment can exceed 20% in some municipalities - continues to be a costly long-term process, with annual transfers from west to east amounting in 2008 alone to roughly $12 billion. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 7.4% 6.5% in 2010. 2012. GDP contracted 4.7% 5.1% in 2009 but grew by 3.6% 3.7% in 2010. In its annual projection for 2010, and 3.0% in 2011, the Federal Government expects the upswing to continue, with GDP forecast before dipping to grow this year at 0.9% in 2012 - a real rate reflection of 2.3%. The recovery was attributable primarily to rebounding manufacturing orders the worsening euro-zone financial crisis and exports - increasingly outside the Euro Zone. Domestic demand, however, is becoming more significant driver of Germany's economic expansion. financial burden it places on Germany as well as falling demand for German exports. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2010. The Bundesbank expects 2010, but slower spending and higher tax revenues reduce the deficit to drop to about 2.5% 1.7% in 2011, below and the EU's 3% limit. government estimates it had a balanced budget in 2012. A constitutional amendment approved in 2009 likewise limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.5% in 2012. GDP contracted 5.1% in 2009 but grew by 3.7% 4.2% in 2010, and 3.0% in 2011, before dipping to 0.9% 0.7% in 2012 - a reflection of the worsening euro-zone financial crisis low investment spending due to crisis-induced uncertainty and the financial burden it places on Germany as well as falling decreased demand for German exports. exports from recession-stricken periphery countries. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 3.3% 4.1% in 2010, but slower spending and higher tax revenues reduce reduced the deficit to 1.7% 0.8% in 2011, and the government estimates it had 2011. In 2012 Germany reached a balanced budget in 2012. surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. 2016 though the target was already reached in 2012. By 2014, the federal government wants to balance its budget. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.5% in 2012. GDP contracted 5.1% in 2009 but grew by 4.2% in 2010, and 3.0% in 2011, before dipping to 0.7% 5.3% in 2012 - 2013. The new German government introduced a reflection minimum wage of low investment spending due $11 per hour to crisis-induced uncertainty and the decreased demand for German exports from recession-stricken periphery countries. take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011. In 2011 and in 2012 Germany reached a budget surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. By 2014, the federal government wants to balance its budget. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.3% 5.2% in 2013. 2014. The new German government introduced a minimum wage of $11 about $11.60 (8.50 euros) per hour to take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 Germany reached a budget surplus of 0.1%. The budget was essentially in balance in 2014. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes plans to replace nuclear power with renewable energy. energy, which accounted for 27.8% of gross electricity consumption in 2014, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Extremely low inflation, caused largely by low global energy prices and a weak euro, are expected to boost German GDP growth in 2015.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.
Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.2% in 2014. II. The new German government Government introduced a minimum wage of about $11.60 (8.50 euros) per hour to take that took effect in 2015.
Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 2015 Germany reached a budget surplus of 0.1%. The budget was essentially in balance in 2014. 0.9%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 2016, though the target was already reached in 2012.
The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 27.8% of gross electricity consumption in 2014, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Extremely low inflation, caused largely Domestic consumption, bolstered by low global energy prices and a weak euro, are expected likely to boost drive German GDP growth again in 2015. 2016.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.
Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The new German Government introduced a minimum wage of about $11.60 (8.50 euros) per hour in 2015 that took effect increased to $9.79 (8.84 euros) in 2015. January 2017.
Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2015 2016 Germany reached a budget surplus of 0.9%. 0.6%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.
The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 27.8% 29.5% of gross electricity consumption in 2014, 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Domestic consumption, bolstered by low energy prices and a weak euro, and exports are likely to drive German GDP growth again in 2016. 2017.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and equipment. Germany benefits from a highly skilled labor force. Like force, but, like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.
Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong economic growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The German Government introduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) in January 2017.
Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2016 2017 Germany reached a budget surplus of 0.6%. 0.7%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.
The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Domestic consumption, bolstered by The German economy suffers from low energy prices levels of investment, and a weak euro, government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Domestic consumption, investment, and exports are likely to drive German GDP growth again in 2017. 2018, and the country’s budget and trade surpluses are likely to remain high.

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment. Germany benefits from a highly skilled labor force, but, like its Western European neighbors, faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.
Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong economic growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The German Government introduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) in January 2017.
Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2017 Germany reached a budget surplus of 0.7%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.
Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.
The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Domestic consumption, investment, and exports are likely to drive German GDP growth in 2018, and the country’s budget and trade surpluses are likely to remain high.

leading diversified, export-driven, core EU and eurozone economy; key automotive, chemical, engineering, finance, and green energy industries; growth stalled by energy crisis; crisis and declining exports; tight labor market with falling working-age population; fiscal rebalancing with phaseout of energy price supports