Germany Economic Conditions in the Early 2000's

Germany Economic Conditions in the Early 2000’s

Germany is one of the most developed nations in the world and the leading economy in the EU, with a GDP that represents 29% of that of the eurozone and 21% of that of Europe at 28. The tertiary sector contributes with 70% to the country’s wealth, employing 73% of the workforce, but the backbone of the German economy continues to be the manufacturing sector (which touched 30% of GDP, according to a 2013 estimate, welcoming 24% of workers). The leading sectors are still the automotive, chemical, electronic, steel and machinery sectors, the leading export sector, which in 2013 generated 237.947 billion dollars. These are sectors with great industrial traditions, made up of multinationals and a dense network of small and medium-sized enterprises that make use of the most advanced research and development activities. The high level of internationalization is confirmed by the presence in Germany of 37 among the 500 companies with global turnover. Mining production still has an important specific weight, in particular that of coal, which, despite the country being one of the main suppliers, is imported in large quantities so as not to run out of internal stocks. The nuclear option, which supported nearly half of the energy needs (2010), suffered a setback after the Fukushima disaster of March 2011. Prime Minister Angela Merkel announced the rapid closure of 8 of the 17 nuclear reactors.

According to medicinelearners, the price of reunification (with the complex reconciliation of the industrial structure and the welfare system of the GDR to the parameters of the West) has meant for the country a decade of economic stagnation (from 1992 to 2005 the average annual growth of GDP was of 1.2%). Under the weight of taxes and the regulation put in place by the Schröder government (1998-2005) to recover the large deficit (equalized in 2008), there was a heavy impact on the world of work (the unemployment rate in 2005 exceeded 11%). In the course of the new millennium, however, Germany has reaped the fruits of the reform action, returning to registering a surplus in the foreign accounts for even very high values, confirming its role as the third country in the world for imports and exports.. In addition to the machinery, the country stands out in exports for chemical and pharmaceutical products (world leader with 230 billion dollars in 2013), motor vehicles (second after the United States), metals and food products. A decisive turnaround began to be seen in 2006, manifesting itself more clearly with the explosion of the 2008 financial crisis, which was accompanied by a reduction in taxation. The shrewd savings of the financial structure and a solid work of industrial engineering have made this country the main reference of the European Union: while unemployment reached record figures in the old continent, in Germany it progressively dropped to reach 5.2%. in 2013, ringing, since 2006, eight consecutive years of increase in employment. Faced with the aggressive economic challenges of the BRICS countries,

The deficit / GDP ratio has remained well below the parameter set by Maastricht for several consecutive years, averaging −0.1%. In this phase, the pace of GDP growth, albeit with some fluctuations, takes on positive characteristics, with + 3.3% in 2011, + 0.7% the following year and + 1.4% in 2014. The average income (with the same purchasing power) crossed the symbolic figure of 40,000 euros per capita in 2011. The rigor adopted by Germany has transformed the country into an economic model and a leading function of the eurozone, whose components as a result of the world crisis were confronted with a sharp increase in the deficit due to an increase in expenses and a reduction in incomes. The main indications for the reform policies of the Southern European countries were indicated and suggested by the German government and, for some years, the mediated index of the state of health of the countries at risk of default were the fluctuations of the respective government bonds measured through the difference with the German ones (spread). While maintaining its leading role in the eurozone, the German economy has slowed down growth since 2013, falling by 0.2% in the second quarter of 2014. This is a slowdown attributable to the new European crisis and attributable to the unsatisfactory performance of exports and the decline in investments. One of the most visible effects is the substantial reduction in the automotive market: -25% in August 2014, a collapse that can only be compared with the halving of a totally different historical phase of the world economy (summer of 1984). Air transport is still a measure of the country’s strength, with 105 million passengers (2013) and with Frankfurt and Munich among the thirty major transit airports in the world. Nonetheless, one indicator of potential fragility is observed with the motorway and railway network, per capita, there is a progressive deterioration of the transport infrastructures (in particular the water communication network), less and less supported by public investments.

Germany Economic Conditions in the Early 2000's

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