GERMAN ECONOMY

By,Gaurav Nikam

Kuldipsinh RayjadaAmish ChovatiyaSagar Ghimeliya

Shweta SinghPranali Trivedi

Assisted by: Prof. Rita Sharma

HISTORY

• 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.

INTRODUCTION

• 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.

SOME FACTS AND FIGURES• As of January 2015 the unemployment rate was 4.8%.• As of December 2014 the CPI rate was 0.6%.• Freedom from corruption is 78% and decreasing.• Nominal GDP is $3915 Trillion• GDP(PPP) is $3486 Trillion• GDP growth rate is 1.6%• GDP per capita is $48226(nominal) and $46896(PPP)• GDP by sector: agriculture 0.9%, industry 29.1%, service 70%.• Inflation is 0.5%• Labour force 43.93 million• Agriculture(2.4%), industry(29.7%), services(67.8%)• Average gross salary is EUR2977/ $4076 monthly.

BASIC ASPECTS OF GERMAN ECONOMY

INDUSTRIES• Of the world's 500 largest stock-market-listed companies measured by

revenue in 2010, the Fortune Global 500, 37 are headquartered in Germany. Well-known global brands are Mercedes-Benz, BMW, SAP, Siemens,Volkswagen, Adidas, Audi, Allianz, Porsche,Bayer, BASF, Bosch, and Nivea.

• Germany is recognised for its specialised small and medium enterprises. Around 1000 of this companies are global market leaders in their segments.

• Germany excels in production of automobiles, machinery, chemicals and electrical equipments. With the production of 5.2 million automobiles in 2009, Germany was the forth largest producer and of automobiles.

SERVICE SECTOR

• In 2008 services constituted 70% of gross domestic product (GDP), and the sector employed 67.5% of the workforce.

• The subcomponents of services are financial, renting, and business activities (30.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%).

• Germans were the first to bring insurance policies.

Germany as an Export Nation

• Germany is the third largest export economy in the world .• Germany is the largest exporter of automobiles in the world.• It is the largest capital exporter in the world.• In 2013 Germany exported $1.38T and imported $1.15T ,

resulting in positive trade balance of $237B.• The top exports of Germany are Cars ($152B), Vehicle

Parts ($58.7B),Packaged Medicaments ($50.9B), Planes, Helicopters, and/or Spacecraft($32.6B) and Petroleum Gas ($24.2B).

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.

WEALTH

• Germany is the richest country in Europe, and the second richest in the world after the United States, in terms of the number of high wealth households worth more than $100 million.

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

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.

INDIA vs GERMANY

• According to Economic complexity index the ECI value of Germany is 2.03 making it the third most complex economy.

• The ECI rank of India is 47 with the value of 0.25.

AGRICULTURE SERVICE INDUSTRY

INDIA 17% 57% 26%

GERMANY 0.9% 70% 29.1%

BUISINESS FREEDOM

GOVERNMENT SPENDING

INVESTMENT FREEDOM

FREEDOM FROM CORRUPTION

OVERVIEW• STRENGHT1. High innovation rates/ skilled labour2. Strong export3. Price stability, low inflation4. High investments in research and development5. Low debts, high savings6. Transparent and anti-corrupt system.• WEAKNESSES1. Few natural resources2. High dependence on external market3. Dependence on energy and oil supply

REFERENCES

1. http://www.heritage.org/index/visualize?countries=germany|india&src=country

2. https://en.wikipedia.org/wiki/Economy_of_Germany#Data

3. http://www.economist.com/topics/german-economy

4. http://www.tatsachen-ueber-deutschland.de/en/content-home/facts-and-figures/economy.html

5. http://atlas.media.mit.edu/en/profile/country/deu/6. http://atlas.cid.harvard.edu/rankings/

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