Economic Trends in GermanyEconomic Trends in Germany
Andreas GurschActing Director
German Trade Office Taipei
SurveySurvey
- Review to 2005, End of Schröder-era- Analysis of Germany´s economic
situation- The year 2006, The Merkel-era- Germany´s foreign affairs- Germany´s economic outlook- Germany´s best technologies
Review: End of Schröder era 2005Review: End of Schröder era 2005
Germany West EastUnemployed 4,7 Mil. 3,2 Mil. 1,5 Mil.
Rate 11,4 % 9,6 % 18,2 %
Vacancies 460.000 360.000 100.000
Unemployment in August 2005
Economic spirit in 2005: How is your business outlook?
Companies
„All right“ 20 %
„Rather good“ 51 %
„Rather bad“ 22 %
„bad“ 7 %
Analysis of Germany´s strength
- World´s market leader in export- High innovation; „Land of ideas“, most patent
applications worldwide- High qualified employees- Very good infrastructure- World´s leader in environmental protection and
protection of natural resources- Small and medium sized companies as driver of
economic cycle- High degree of social peace
Analysis of Germany´s flaccidities
- Domestic demand is too low- Economic growth below average in the EU- Problems with educational system asserted by
the european PISA-study- Social peace attacked by „Hartz IV“-law- 3 % budget deficit limitation by the EU
complicates investment
The Merkel-era, the year 2006The Merkel-era, the year 2006
0
2
4
6
8
10
12
14
rate in % 12.1 12.2 12 11.5 10.8 10.5 10.5 10.5 10.1 9.8 9.6 9.6
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Unemployment in 2006
2005 2006
„All right“ 20 % 32 %
„Rather Good“ 51 % 51 %
„Rather bad“ 22 % 15 %
„Bad“ 7 % 2 %
Economic spirit in 2006: How is your business outlook?
What happened?What happened?
Schröder- AGENDA 2010- Employment law
(liberalisation of job protection)
- „Hartz IV“-law- Environmental
technology
Merkel- Fiscal reform- Tax reform- Social law (health)
Hightech-MasterplanHightech-Masterplan
- Incentives for more venture capitalism- Encourage people to start their own enterprise- Support programmes for research companies- „Knowledge makes markets“-campaign to support
co-operation between small-and-medium-sized- enterprises and universities research institutes
- Advancement of innovation in small-and-medium-sized- enterprises
- Counteract the lack of specialized staff
Germany´s foreign affairsGermany´s foreign affairs
Presidency of the European Union in 2007
Presidency of the G 8 in 2007
Main focus of G 8 PresidencyMain focus of G 8 Presidency
„Growth and responsibility“ as a
guiding theme
Design of globalized world economy
Development of Africa
Main focus of EU presidencyMain focus of EU presidency
European constitution Design of economic, social and
ecological future Area of freedom, peace and law Common foreign and safety policy
Germany´s economic outlookGermany´s economic outlook
2007 is supposed to become a booming year!- VAT-raise of 3 % surprisingly doesn´t stop
growth of domestic demand- Consequently tax revenue raises and budget
deficit is minimized- Unemployment rate is supposed to lower from
10.8 % in 2006 to 8.8 %- Expansion of industry production and even the
building industry
Germany´s best technologiesGermany´s best technologies
Automotive sector
Renewables sector
Electrical and machinery sector
Thank you for your attention
For more information about German companies and technologies please contact the
German Trade Office Taipei 4F, No.4, Min-Sheng E. Rd.,Sec. 3 Taipei 104, Taiwan Tel: +886-2-2506-9028 Fax:+886-2-2506-8182 http://taiwan.ahk.de