Germany is with a gross inland product of 2.24 trillion euro (conditions: 12. January 2005) the largest national economy and industrial nation in Europe and the third biggest of the world. Besides Germany is one of the largest export nations, gained however the largest surplus. Since the country is relatively lacking in raw materials, its economics is predominant on the secondary and tertiary sector concentrates. Large surfaces of the country are however agriculturally used (however are active only 2% - 3% of the persons employed in the agriculture). In the recent past growth was however only weak and the German economy is by susceptibility against influences from the outside, internal problems and integration problems by the new Lands of the Federal Republic marked.

Characterisation

The German economy is often described as social free-market economy. The German state offers an extensive offer of social services. Although the state in some sectors supports the economy by subsidies, competition and free-market economy are Grundpfeiler in the economic policy. The Federal Governments of the 1990er and 2000er years provided by the privatisation of Federal Railroads and Federal Postal Administration for more competition.

The German economy is with an export rate of more than one third of the inland product strong export-oriented. For this reason the export was always a key element of economic growth for Germany. Germany is therefore a strong proponent of strong economic co-operation on European level.

History

Overview

After the Second World War Germany was economically and socially because of the soil. At the currency reform 1948 the economic reconstruction in the Wirtschaftswunder so mentioned succeeded, the citizens by the welfare state was at the same time secured. Germany became the export master; Productivity and quality of German products in particular mechanical engineering enjoyed and enjoy this very day world-wide a good reputation. West Germany experienced into the early 1970er almost continuous high economic growth, which became smaller however thereafter - with recessions 1974 and 1981/82 as well as a growth point 1979 -. In the 1970er and 1980er to years West Germany as well as Denmark and Luxembourg belonged to the states with the highest average income of the EEC. After a growth high 1988/89 and the West German reunification boom 1990/91 the recession of 1993 followed. Since 1994 there was again eight years long growth, which amounted to on the average about 1.5%. After a stagnation of 2001 - 2003 grew the economy 2004 by 1,6% and 2005 by 0,9% (provisional computation, conditions 12 January 2005, source: Federal Statistical Office). Unemployment rose from approximately 2.5 millions (1992) to approximately 4.8 millions (2005).

Reunification

After the reunification first the marode economy in the then new Lands of the Federal Republic had to be geschultert. This was predominantly financed over new indebtedness in the households and transmission of some cost factors into the social security systems. Fourteen years after the German reunification is recognizable large progress in the increase of the East German standard of living, which is free-market economy established and which became infrastructure improved. The productivity for each employee rose and the wage costses is more favorable clearly than in West Germany. At the same time the adjustment process between east and west longer than originally accepted, after some yardsticks lasts even already stagnates it since center of the 1990er years. The economic growth in the east precipitates smaller than in the west, unemployment is twice as high, qualified employees moves away. The consumer rate in the east depends directly on the money syringes from the west, which amount to annually 65 Mrd.$ or more than 4% West German GROS DOMESTIC PRODUCT. Additionally to the solidarity tax the government plans economic development aid in the year 2019.

Articles in category "Economics of Germany"

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