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{{Short description|none}} {{Use British English|date=September 2019}} {{Use dmy dates|date=April 2024}} {{Infobox economy | country = Germany | image = Frankfurter Altstadt mit Skyline 2019.jpg | image_size = 310px | caption = [[Frankfurt]], the [[financial centre]] of Germany, seat of the [[European Central Bank]] and one of the major financial centres in Europe | currency = [[Euro]] (EUR, €) | year = [[Calendar year]] | organs = [[European Union|EU]], [[World Trade Organization|WTO]], [[G-20 major economies|G-20]], [[Group of Seven|G7]] and [[Organisation for Economic Co-operation and Development|OECD]] | population = 83,445,000 (2024 {{abbr|est.|estimate}})<ref>{{cite web|url=https://ec.europa.eu/eurostat/databrowser/view/tps00001__custom_13580070/default/table?lang=en|title=Population on 1 January|publisher=[[Eurostat]]|website=ec.europa.eu/eurostat|access-date=1 November 2024}}</ref> | group = {{plainlist| * [[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref> * [[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref> * Largest European economy; diversified; core EU and [[Eurozone|EA]] member<ref name="CIAWFGM"/> * [[Welfare state]]<ref name="Germany_welfare"/><ref name="Kenworthy"/> }} | gdp = {{plainlist| *{{Increase}} $4.745 trillion ([[GDP (nominal)|nominal]]; {{abbr|2025f|2025 forecast}})<ref name="IMFWEODE">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2025/April/weo-report?c=134,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook database: October 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref> *{{Increase}} $6.161 trillion ([[Purchasing power parity|PPP]]; {{abbr|2025f|2025 forecast}})<ref name="IMFWEODE"/> }} | gdp rank = {{plainlist| *[[List of countries by GDP (nominal)|3rd (nominal; 2025)]] *[[List of countries by GDP (PPP)|6th (PPP; 2024)]] }} | growth = {{plainlist| *−0.3% ({{abbr|2023e|2023 estimate}})<ref name="IMF_GROWTH">{{cite web|url=https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025|title=Global Growth: Divergent and Uncertain|publisher=[[International Monetary Fund]]|website=imf.org}}</ref> *−0.2% ({{abbr|2024e|2024 estimate}})<ref name="IMF_GROWTH"/> *0.3% ({{abbr|2025f|2025 forecast}})<ref name="IMF_GROWTH"/> *1.1% ({{abbr|2026f|2026 forecast}})<ref name="IMF_GROWTH"/> }} | per capita = {{plainlist| *{{Increase}} $55,911 (nominal; {{abbr|2025f|2025 forecast}})<ref name="IMFWEODE"/> *{{Increase}} $72,599 (PPP; {{abbr|2025f|2025 forecast}})<ref name="IMFWEODE"/> }} | per capita rank = {{plainlist| *[[List of countries by GDP (nominal) per capita|17th (nominal; 2024)]] *[[List of countries by GDP (PPP) per capita|19th (PPP; 2024)]] }} | sectors = {{plainlist| *[[Primary sector of the economy|agriculture]]: 0.7% *[[Secondary sector of the economy|industry]]: 28.1% *[[Tertiary sector of the economy|services]]: 62.6% *(2023 {{abbr|est.|estimate}})<ref name="CIAWFGM">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/germany/#economy|title=Germany - The World Factbook|work=[[The World Factbook]]|publisher=[[Central Intelligence Agency]]|access-date=6 January 2025}}</ref> }} | components = {{plainlist| * Household consumption: 53.1% * Government consumption: 19.5% * Investment in fixed capital: 20.4% * Investment in inventories: −0.5% * Exports of goods and services: 47.3% * Imports of goods and services: −38.7% * (2017)<ref name="CIAWFGM"/> }} | cpi = 78 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |title=CPI 2023 |date=30 January 2024 |publisher=[[Transparency International]] |access-date=30 January 2024 |archive-date=4 February 2023 |archive-url=https://web.archive.org/web/20230204001659/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|rank 9th]]) | inflation = {{plainlist| *6.0% (2023)<ref name="IMFWEODE"/> *2.4% ({{abbr|2024f|2024 forecast}})<ref name="IMFWEODE"/> *2.0% ({{abbr|2025f|2025 forecast}})<ref name="IMFWEODE"/> *2.0% ({{abbr|2026f|2026 forecast}})<ref name="IMFWEODE"/> }} | poverty = 20.9% at risk of poverty or social exclusion (AROPE 2024)<ref>{{cite web |title=People at risk of poverty or social exclusion |url=https://ec.europa.eu/eurostat/databrowser/view/tepsr_lm410/default/table?lang=en |website=ec.europa.eu/eurostat |publisher=Eurostat}}</ref> | gini = 29.9 {{color|green|low}} (2024)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |title=Gini coefficient of equivalised disposable income - EU-SILC survey |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat}}</ref> | hdi = {{plainlist| *0.950 {{color|darkgreen|very high}} (2022, [[List of countries by Human Development Index|7th]])<ref name="dehdi">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=28 April 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> *0.881 {{color|darkgreen|very high}} (2022, [[List of countries by inequality-adjusted HDI|IHDI 9th]])<ref name="dehdi"/>}} | labor = {{plainlist| *50 million (2023)<ref name="Destatis"/> *81.1% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group 20-64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=20 July 2024}}</ref>}} | occupations = {{plainlist| *[[Primary sector of the economy|agriculture]]: 1.4% *[[Secondary sector of the economy|industry]]: 24.2% *[[Tertiary sector of the economy|services]]: 74.3% *(2016)<ref name="CIAWFGM"/>}} | unemployment = {{plainlist| *5.4% (2022)<ref name="Destatis"/> *5.8% youth unemployment (August 2020)<ref name="Destatis"/> *2.0 million unemployed (August 2020)<ref name="Destatis">{{cite web |url=https://www.destatis.de/EN/Themes/Economy/Foreign-Trade/Tables/order-rank-germany-trading-partners.html |title=August 2020: employment slightly up on the previous month |publisher=[[Federal Statistical Office of Germany]] |website=destatis.de |access-date=2 October 2020}}</ref>}} | average gross salary = [[List of European countries by average wage|€5,274 monthly (2024)]]<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref> | average net salary = [[List of European countries by average wage|€3,300 monthly (2024)]]<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref> | industries = {{hlist| [[High-technology]] | [[Iron]]| [[steel]]| [[coal]]| [[cement]]| [[chemicals]]| [[machinery]]| [[vehicles]]| [[machine tools]]| [[electronics]]| [[automobiles]]| [[food]] and [[beverages]]| [[shipbuilding]] | [[Arms industry|defence]] | [[textiles]] | [[information technology]] | [[renewable energy]] | [[biotechnology]] | [[pharmaceutical]] }} | exports = $1.66 trillion (2024)<ref name="Trade Partners of Germany"/> | export-goods = motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products | export-partners = {{plainlist| * {{flag|European Union}} 55.6% * {{flag|United States}} 9.3% * {{flag|France}} 8.5% * {{flag|Netherlands}} 7.1% * {{flag|Poland}} 6.0% * {{flag|China}} 5.8% * {{flag|Italy}} 5.2% * {{flag|Austria}} 5.1% * {{flag|United Kingdom}} 5.0% * (2024)<ref name="Trade Partners of Germany">{{cite web |title=Exports in December 2024: +2.9% on November 2024 |url=https://www.destatis.de/EN/Press/2025/02/PE25_048_51.html|access-date=7 February 2025}}</ref><ref name="CIAWFGM"/>}} | imports = $1.4 trillion (2024)<ref name="Trade Partners of Germany"/> | import-goods = machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products | import-partners = {{plainlist| * {{flag|European Union}} 52.2% * {{flag|China}} 11.9% * {{flag|Netherlands}} 7.2% * {{flag|United States}} 6.9% * {{flag|France}} 5.9% * {{flag|Italy}} 5.2% * {{flag|Poland}} 5.1% * {{flag|Czechia}} 4.6% * {{flag|Austria}} 4.0% * (2024)<ref name="Trade Partners of Germany"/> | current account = $280 billion (2019)<ref name="CIAWFGM"/>}} | FDI = {{plainlist| * $1.653 trillion (2017)<ref name="CIAWFGM"/> * Abroad: $2.298 trillion (2017)<ref name="CIAWFGM"/>}} | gross external debt = $5.4 trillion (2022)<ref>{{cite web|title=Deutsche Bundesbank|url=http://www.bundesbank.de/Redaktion/EN/Downloads/Statistics/External_Sector/International_Investment_Position/sdds_auslandsverschuldung.en.pdf?__bl|access-date=2017-07-09|url-status=live|archive-url=https://web.archive.org/web/20180428020245/https://www.bundesbank.de/Redaktion/EN/Downloads/Statistics/External_Sector/International_Investment_Position/sdds_auslandsverschuldung.en.pdf?__bl|archive-date=28 April 2018}}</ref> | debt = {{plainlist| * 63.6% of GDP (2023)<ref name="1st Notif">{{cite web |title=Provision of deficit and debt data for 2023 - first notification|url=https://ec.europa.eu/eurostat/web/products-euro-indicators/-/2-22042024-ap |website=ec.europa.eu/eurostat |date=22 April 2024 |publisher=Eurostat |access-date=28 April 2024}}</ref> * €2.6 trillion (2023)<ref name="1st Notif"/>}} | revenue = 46.1% of GDP (2023)<ref name="1st Notif"/> | expenses = 48.6% of GDP (2023)<ref name="1st Notif"/> | balance = {{plainlist| * €102 billion deficit (2023)<ref name="1st Notif"/> * −2.5% of GDP (2023)<ref name="1st Notif"/>}} | credit = {{plainlist| * [[Standard & Poor's]]:<ref>{{cite web |title=Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011 |url-status=live |archive-url=https://web.archive.org/web/20110928234500/http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |archive-date=28 September 2011}}</ref><ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=31 May 2011 |location=London |url-status=live |archive-url=https://web.archive.org/web/20130801105234/http://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |archive-date=1 August 2013}}</ref> * AAA * Outlook: Stable * [[Moody's]]:<ref name=guardian/> * Aaa * Outlook: Stable * [[Fitch Group|Fitch]]:<ref name=guardian/> * AAA * Outlook: Stable * Scope:<ref>{{cite web |url=https://www.scoperatings.com/ratings-and-research/rating/EN/177786 |title=Scope affirms Germany's AAA rating with Stable Outlook |access-date=2024-09-27}}</ref> * AAA * Outlook: Stable}} | aid = {{plainlist| * €26 billion from [[European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=http://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/de_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/http://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/de_en.pdf |archive-date=25 December 2017 |url-status=live }}</ref> * €27.87 billion from [[European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=http://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_de_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170420135423/http://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_de_en.pdf |archive-date=20 April 2017 |url-status=live }}</ref>}} | reserves = $400 billion (2022)<ref name="ceicdata-2">{{cite web|url=https://www.ceicdata.com/en/indicator/germany/foreign-exchange-reserves |title=Germany Foreign Exchange Reserves |publisher=CEIC Data - UK |date=2018 |access-date=2018-08-05}}</ref> }} The economy of [[Germany]]<!-- DO NOT BOLD, see [[WP:SBE]] for further guidance. --> is a [[Developed country|highly developed]] [[social market economy]].{{sfn|Spicka|2007|p=2}} It has the largest national economy in [[Europe]], the [[List of countries by GDP (nominal)|third-largest by nominal GDP]] in the world, and the [[List of countries by GDP (PPP)|sixth-largest by PPP-adjusted GDP]]. Due to a volatile currency [[exchange rate]], Germany's GDP as measured in dollars fluctuates sharply, but it is among the world's top 4 since 1960.<ref>https://www.madisontrust.com/information-center/visualizations/the-10-biggest-economies-in-the-world-over-time-1960-2024/</ref> In 2025, the country accounted for 23.7% of the Euro area economy according to the [[International Monetary Fund]] (IMF).<ref name="IMF Data">{{Cite web |title=World Economic Outlook Database October 2025 |url=https://www.imf.org/en/Publications/WEO/weo-database/2025/April |access-date=2024-11-09 |website=www.imf.org}}</ref> Germany is a founding member of the [[European Union]] and the [[eurozone]].<ref>Alfred Dupont CHANDLER， Takashi Hikino， Alfred D Chandler, [https://books.google.com/books?id=ENWMZqhD9RYC&pg=PA593 ''Scale and Scope: The Dynamics of Industrial Capitalism''] 1990</ref><ref>{{cite web |url=http://www.hup.harvard.edu/catalog.php?isbn=9780674789951 |title=Scale and Scope — Alfred D. Chandler, Jr. | Harvard University Press |publisher=Hup.harvard.edu |access-date=2014-08-13 |url-status=live |archive-url=https://web.archive.org/web/20141120021430/http://www.hup.harvard.edu/catalog.php?isbn=9780674789951 |archive-date=20 November 2014}}</ref> Germany is [[List of countries by exports|the third-largest exporter globally]] with $1.66 trillion worth of goods and services exported in 2024.<ref name="autogenerated1">{{cite news |last=Ettel |first=Anja |date=2 February 2015 |title=Warum Europa über Deutschlands Erfolg meckert |trans-title=Why Europe complains about Germany's success |url=https://www.welt.de/wirtschaft/article137041422/Warum-Europa-ueber-Deutschlands-Erfolg-meckert.html |url-status=live |archive-url=https://web.archive.org/web/20150202205738/http://www.welt.de/wirtschaft/article137041422/Warum-Europa-ueber-Deutschlands-Erfolg-meckert.html |archive-date=2 February 2015 |access-date=3 February 2015 |website=Die Welt |language=de}}</ref> In 2024, Germany recorded a [[Balance of trade|trade surplus]] worth $255 billion, ranking [[List of countries by net goods exports|2nd worldwide]].<ref name="autogenerated1" /> The [[Tertiary sector of the economy|service sector]] contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Exports accounted for 50.3% of national output.<ref>{{cite web |author= |author-link=Microtrends |title=Country Profile: Germany |url=https://www.macrotrends.net/countries/DEU/germany/exports#:~:text=Germany%20exports%20for%202022%20was,a%207.8%25%20decline%20from%202019. |website=Macro Trends |page=1 |quote=}}</ref><ref>{{cite web |url=http://www.voxeu.org/article/germany-s-capital-exports-under-euro |title=Germany's capital exports under the euro | vox |date=2 August 2011 |publisher=Voxeu.org |access-date=2014-08-13 |url-status=live |archive-url=https://web.archive.org/web/20140222013829/http://www.voxeu.org/article/germany-s-capital-exports-under-euro |archive-date=22 February 2014}}</ref> The top 10 [[exports of Germany]] are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics.<ref>{{cite web | url = http://www.destatis.de/EN/FactsFigures/NationalEconomyEnvironment/ForeignTrade/_Graphic/TradingGoods.png?__blob=poster | title = CIA Factbook | access-date = 23 April 2015 | author = Destatis | author-link = Statistiches Bundesamt | url-status = live | archive-url = https://web.archive.org/web/20150502033130/https://www.destatis.de/EN/FactsFigures/NationalEconomyEnvironment/ForeignTrade/_Graphic/TradingGoods.png?__blob=poster | archive-date = 2 May 2015}}</ref> Germany is the [[List of countries by manufacturing output|largest manufacturing economy]] in Europe, contributing around one third of all manufacturing in Europe,<ref>https://ec.europa.eu/eurostat/statistics-explained/index.php?oldid=502915</ref> which makes it more resilient to global economic crises.<ref>{{cite news|url=https://www.economist.com/news/briefing/21552567-other-countries-would-love-import-germanys-economic-model-its-way-doing-things|title=What Germany offers the world|newspaper=The Economist|date=14 April 2012|access-date=28 April 2018|url-status=live|archive-url=https://web.archive.org/web/20180428020244/https://www.economist.com/news/briefing/21552567-other-countries-would-love-import-germanys-economic-model-its-way-doing-things|archive-date=28 April 2018}}</ref> Germany conducts applied research with practical industrial value and sees itself as a bridge between the latest university insights and industry-specific product and process improvements. It generates a great deal of knowledge in its own laboratories.<ref>{{cite web |url=https://www.asme.org/engineering-topics/articles/manufacturing-processing/how-does-germany-do-it |title=How Does Germany do It? |access-date=2017-04-29 |url-status=live |archive-url=https://web.archive.org/web/20170902011441/https://www.asme.org/engineering-topics/articles/manufacturing-processing/how-does-germany-do-it |archive-date=2 September 2017}}</ref> Among [[OECD]] members, Germany has a highly efficient and strong [[Social security in Germany|social security system]], which comprises [[Welfare state#Effects|roughly 25% of GDP]].<ref name="Kenworthy">{{Cite journal |jstor = 3005973|title = Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment|journal = Social Forces|volume = 77|issue = 3|pages = 1119–1139|last1 = Kenworthy|first1 = Lane|year = 1999|doi = 10.2307/3005973|url = http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-url = https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-date = 10 August 2013|url-status = live}}</ref><ref name="Bradley et al.">{{Cite journal |jstor = 3088901|title = Determinants of Relative Poverty in Advanced Capitalist Democracies|journal = American Sociological Review|volume = 68|issue = 1|pages = 22–51|last1 = Moller|first1 = Stephanie|last2 = Huber|first2 = Evelyne|last3 = Stephens|first3 = John D.|last4 = Bradley|first4 = David|last5 = Nielsen|first5 = François|year = 2003|doi = 10.2307/3088901}}</ref><ref name="Germany_welfare">{{Cite web | url=http://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG | title=Social Expenditure – Aggregated data|work=[[OECD]]}}</ref> Germany is rich in [[Lumber|timber]], [[lignite]], [[potash]], and [[salt]]. Some minor sources of [[natural gas]] are being exploited in the state of [[Lower Saxony]]. Until [[German reunification]], the [[East Germany|German Democratic Republic]] mined for [[uranium]] in the [[Ore Mountains]] (see also: [[Wismut (company)|SAG/SDAG Wismut]]). [[Energy in Germany]] is sourced predominantly by [[coal|fossil fuels]] (30%), with [[wind power]] in second place, then gas, solar, biomass (wood and biofuels), and hydro.<ref>{{Cite web|url=https://www.ise.fraunhofer.de/content/dam/ise/en/documents/News/0120_e_ISE_News_Electricity%20Generation_2019.pdf|title=Public Net Electricity Generation in Germany 2019|last=Burger|first=Bruno|date=15 January 2020|website=ise.fraunhofer.de|location=Freiburg, Germany: Fraunhofer Institute for Solar Energy Systems ISE|access-date=11 February 2020}}</ref> Germany is the first major industrialised nation to commit to the renewable [[energy transition]] called ''[[Energiewende]]''. Renewables produced 46% of electricity consumed in Germany (as of 2019).<ref>{{cite web |title=Electricity production in the 2nd quarter of 2019: nearly half of the electricity supplied was produced from renewables |url=https://www.destatis.de/EN/Press/2019/09/PE19_367_43312.html |website=Destatis |access-date=4 November 2019}}</ref> Germany has been called "the world's first major [[renewable energy]] economy".<ref name="renewableenergyworld.com">{{Cite web |url=http://www.renewableenergyworld.com/rea/news/article/2009/04/germany-the-worlds-first-major-renewable-energy-economy |title=Germany: The World's First Major Renewable Energy Economy |access-date=24 February 2024 |archive-date=29 March 2015 |archive-url=https://web.archive.org/web/20150329212358/http://www.renewableenergyworld.com/rea/news/article/2009/04/germany-the-worlds-first-major-renewable-energy-economy |url-status=dead }}</ref><ref name="ise.fraunhofer.de">Fraunhofer ISE, [http://www.ise.fraunhofer.de/en/downloads-englisch/pdf-files-englisch/data-nivc-/electricity-production-from-solar-and-wind-in-germany-2014.pdf Electricity production from solar and wind in Germany – New record in wind power production], p.2 15 December 2014</ref> Germany has the world's [[Gold reserve#Officially reported holdings|second-largest gold reserve]], with over 3,000 tonnes of gold.<ref>{{cite web |date=5 March 2024 |title=World Official Gold Holdings - International Financial Statistics, March 2024 |url=https://www.gold.org/download/file/7739/World_official_gold_holdings_as_of_Mar2024_IFS.xlsx |url-access=registration |access-date=8 March 2024 |website=World Gold Council}}</ref> As of 2023, Germany spends [[List of sovereign states by research and development spending|around 3.1% of GDP, third among major economies]], on [[research and development]].<ref>{{cite web |author=Our World in Data |url=https://ourworldindata.org/grapher/research-spending-gdp |title=Research & development spending as a share of GDP |website=ourworldindata.org |access-date=2024-01-10}}</ref><ref name="unctad">{{cite web |author=Organisation for Economic Co-operation and Development |url=https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm |title=Gross domestic spending on R&D |website=data.oecd.org |access-date=2024-01-10 |archive-date=14 January 2017 |archive-url=https://web.archive.org/web/20170114013730/https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm |url-status=dead }}</ref> It is also the world's [[List of countries by high tech exports|second-largest high-technology exporter]] and ranks in the [[List of countries by stock market capitalization|top 10 of countries by stock market capitalization]].<ref>{{Cite web |title=High-technology exports |url=https://data.worldbank.org/indicator/TX.VAL.TECH.CD?most_recent_value_desc=true |access-date=2023-04-15 |website=World Bank Open Data}}</ref><ref>{{cite web | url=https://data.worldbank.org/indicator/CM.MKT.LCAP.CD | title=World Bank Open Data }}</ref> More than 99 percent of all German companies belong to the German "''[[Mittelstand]]''",<ref>{{Cite web |title=Anteile Kleine und Mittlere Unternehmen 2021 nach Größenklassen in % |url=https://www.destatis.de/DE/Themen/Branchen-Unternehmen/Unternehmen/Kleine-Unternehmen-Mittlere-Unternehmen/Tabellen/wirtschaftsabschnitte-insgesamt.html |access-date=2024-02-22 |website=Statistisches Bundesamt |language=de}}</ref> small and medium-sized enterprises, which are mostly family-owned. These companies represent 48% of the global market leaders in their segments, labelled [[hidden champions]].<ref>{{cite web|url=https://www.bbc.com/news/business-40796571|work=BBC News|title=Germany's 'hidden champions' of the Mittelstand|last=Bayley|first=Caroline|date=17 August 2017|archiveurl=https://web.archive.org/web/20190522010803/https://www.bbc.com/news/business-40796571|archivedate=22 May 2019|url-status=live}}</ref> Of the world's 500 largest publicly listed companies measured by [[revenue]], the [[Fortune Global 500]], 29 are headquartered in Germany, as are [[List of largest companies in Europe by revenue|26 of Europe's 100 largest]]. Germany is home to many [[financial centres]] and economically important cities, such as [[Berlin]], [[Hamburg]], [[Munich]], [[Cologne]], [[Frankfurt]], and [[Stuttgart]]. Four German banks are among the [[List of largest banks|biggest in the world]]. Germany is the world's top location for trade fairs;<ref>{{cite web |url=http://www.expodatabase.com/top-fair-places-germany/ |title=trade shows in Germany, fairs Germany, trade fair Germany, trade show venue Germany |url-status=live |archive-url=https://web.archive.org/web/20140729175015/http://www.expodatabase.com/top-fair-places-germany/ |archive-date=29 July 2014}}</ref> around two thirds of the world's leading trade fairs take place in Germany.<ref>{{cite web | url=http://www.germany.travel/en/business-travel/trade-fairs/trade-fairs/messen.html | title=Trade fairs in Germany | publisher=[[German National Tourist Board]] | access-date=5 February 2014 | url-status=live | archive-url=https://web.archive.org/web/20140202135254/http://www.germany.travel/en/business-travel/trade-fairs/trade-fairs/messen.html | archive-date=2 February 2014}}</ref> Some of the largest international trade fairs and congresses are held in several German cities such as [[Hanover]], Frankfurt, Cologne, [[Leipzig]], and [[Düsseldorf]]. ==History== {{Main|Economic history of Germany}} [[File:GDP per capita development of Germany.svg|thumb|Real GDP per capita development in Germany since 1820]] ===Age of Industrialisation=== {{Main|Industrialization in Germany}} The [[Industrial Revolution]] in Germany got underway approximately a century later than in the United Kingdom, France, and Belgium, partly because Germany only became a [[German Empire|unified country in 1871]].<ref>Compare: {{cite book|last1= Mitchell|first1= Allan|title= Great Train Race: Railways and the Franco-German Rivalry, 1815–1914|date= 2006|publisher= Berghahn Books | url = https://books.google.com/books?id=mZ6pkm-WgWMC | pages = 54–55 | quote = There were until [1870] [...] only the beginnings of a nexus of technological innovation and economic growth, the erratic construction of a platform for what might later be justifiably termed a take-off in Germany. But there is little evidence within the given chronological framework for a full-blown notion of an Industrial Revolution [...].|isbn= 9781845451363}}</ref> <gallery widths="90" heights="90"> File:Maschinenbau-Anstalt Borsig, Berlin Chausseestraße, 1847, Karl Eduard Biermann.jpg|Train factory of [[August Borsig]] in 1847 File:Kemna Lokomotiven.jpg|Many companies, such as steam-machine producer [[Kemna Bau|J. Kemna]], modeled themselves on English industry. File:BASF Werk Ludwigshafen 1881.JPG|[[BASF]] plant in [[Ludwigshafen]], 1881 File:Karl Benz Automobile.jpg|The invention of the automobile. [[Bertha Benz]] and [[Carl Benz|Karl Benz]] in a Benz Viktoria, model 1894 File:4a15881u.tif|The invention of the cruise ship. [[Albert Ballin]]'s [[SS Augusta Victoria (1888)|SS ''Auguste Viktoria'']] in 1890 File:Bonn-Cölner-Eisenbahn 1844.jpg|Railway construction as an expression of the Industrial Revolution (here the [[:de:Bonn-Cölner Eisenbahn-Gesellschaft|Bonn-Cölner railway]] around 1844) File:ZeppelinLZ127a.jpg|The LZ 127 [[LZ 127 Graf Zeppelin|Graf Zeppelin]] of [[DELAG]], the [[List of airlines by foundation|world's first airline]]<ref>{{cite web|url=http://www.airships.net/delag-passenger-zeppelins|website=airships.net |title= DELAG: The World's First Airline|access-date=17 March 2014}}</ref> File:Krupp works.JPG|[[Krupp]] factory in Essen, ({{Circa|1905}}), when Krupp was Europe´s largest company </gallery> The establishment of the ''Deutscher [[Zollverein]]'' (German Customs Union) in 1834 and the expansion of railway systems were the main drivers of Germany's industrial development and political union. From 1834, tariff barriers between increasing numbers of the [[Lesser Germany|''Kleindeutschland'']] German states were eliminated.{{citation needed|date=May 2017}} In 1835 the first German railway linked the [[Franconia]]n cities of [[Nuremberg]] and [[Fürth]] – it proved so successful that the decade of the 1840s saw "railway mania" in all the German states. Between 1845 and 1870, {{convert|8000|km}} of rail had been built and in 1850 Germany was building its own locomotives. Over time, other German states joined the customs union and started linking their railroads, which began to connect the corners of Germany. The growth of free trade and a rail system across Germany intensified economic development which opened up new markets for local products, created a pool of [[middle management|middle managers]],{{clarify|date=October 2018}} increased the demand for engineers, architects, and skilled machinists, and stimulated investments in coal and iron.<ref>Richard Tilly, "Germany: 1815–1870" in Rondo Cameron, ed. [https://books.google.com/books?id=neQ9AAAAIAAJ ''Banking in the Early Stages of Industrialization: A Study in Comparative Economic History''] (Oxford University Press, 1967), pages 151-182</ref> Another factor that propelled German industry forward was the unification of the monetary system, made possible in part by political unification. The Deutsche Mark, a new monetary coinage system backed by gold, was introduced in 1871. However, this system did not fully come into use as silver coins retained their value until 1907.{{citation needed|date=October 2023}} The victory of [[Kingdom of Prussia|Prussia]] and her allies over [[Napoleon III]] of France in the [[Franco-Prussian War]] of 1870-1871 marked the end of French hegemony in Europe and resulted in the proclamation of the German Empire in 1871. The establishment of the empire inherently presented Europe with the reality of a new populous and industrialising polity possessing a considerable, and undeniably increasing, economic and diplomatic presence. The influence of French economic principles produced important institutional reforms in Germany, including the abolition of feudal restrictions on the sale of large landed estates, the reduction of the power of the guilds in the cities, and the introduction of a new, more efficient commercial law. Nonetheless, political decisions about the economy of the empire were still largely controlled by a [[Marriage of Iron and Rye|coalition of "rye and iron"]], that is the [[Junker (Prussia)|Prussian Junker]] landowners of the east and the [[Ruhr]] heavy industry of the west.<ref>Cornelius Torp, "The "Coalition of 'Rye and Iron'" under the Pressure of Globalization: A Reinterpretation of Germany's Political Economy before 1914," ''Central European History'' Sept 2010, Vol. 43 Issue 3, pp 401-427</ref> Regarding politics and society, between 1881 and 1889 Chancellor [[Otto von Bismarck]] promoted laws that provided [[social insurance]] and improved working conditions. He instituted the world's first [[welfare state]]. Germany was the first to introduce social insurance programmes including universal healthcare, compulsory education, sickness insurance, accident insurance, disability insurance, and a retirement pension. Moreover, the government's universal education policy bore fruit with Germany achieving{{when|date=October 2018}} the highest literacy rate in the world – 99% – education levels that provided the nation with more people good at handling numbers, more engineers, chemists, opticians, skilled workers for its factories, skilled managers, knowledgeable farmers, and skilled military personnel.<ref>{{cite web|url= http://www.fsmitha.com/h3/h49soc2.htm|title= Class and Politics in Germany, 1850 to 1900|url-status= live|archive-url= https://web.archive.org/web/20150423115608/http://www.fsmitha.com/h3/h49soc2.htm|archive-date= 23 April 2015}}</ref> By 1900, Germany surpassed [[United Kingdom of Great Britain and Ireland|Britain]] in steel production and became the largest producer behind only the [[United States]]. The German economic miracle was also intensified by unprecedented population growth from 35 million in 1850 to 67 million in 1913. From 1895 to 1907, the number of workers engaged in machine building doubled from half a million to well over a million. Only 40 percent of Germans lived in rural areas by 1910, a drop from 67% at the birth of the Empire. Industry accounted for 60 percent of the gross national product in 1913.<ref>{{cite web|url= https://www.britannica.com/EBchecked/topic/231186/Germany/58197/The-economy-1890-1914|title= Germany - history - geography|url-status= live|archive-url= https://web.archive.org/web/20150503130703/https://www.britannica.com/EBchecked/topic/231186/Germany/58197/The-economy-1890-1914|archive-date= 3 May 2015}}</ref> The German chemical industry became the most advanced in the world, and by 1914 the country was producing half the world's electrical equipment. The rapid advance to industrial maturity led to a drastic shift in Germany's economic situation – from a rural economy into a major exporter of finished goods. The ratio of the finished product to total exports jumped from 38% in 1872 to 63% in 1912. By 1913 Germany had come to dominate all the European markets. By 1914 Germany had become one of the biggest exporters in the world.<ref> {{cite web |url= https://ohiostatepress.org/Books/Complete%20PDFs/Feldenkirchen%20Werner/03.pdf |title= Archived copy |access-date= 2015-02-02 |url-status= live |archive-url= https://web.archive.org/web/20160602204843/https://ohiostatepress.org/Books/Complete%20PDFs/Feldenkirchen%20Werner/03.pdf |archive-date= 2 June 2016 }} </ref> ===Weimar Republic and Third Reich=== {{Main|Economy of Nazi Germany}} [[File:BSPDRWeltkriseEngl.PNG|thumb|250px|left|Gross national product and GNP deflator, year on year change in %, 1926 to 1939, in Germany. [https://www.google.de/search?q=Dr.+Norbert+R%C3%A4th,+Rezessionen+in+historischer+Betrachtung.+In%3A+Wirtschaft+und+Statistik+3%2F2009&gws_rd=ssl Via google to Pdf-file of German publication]]] [[File:Occupation in Germany by district, 1925.svg|thumb|Occupation by administrative district in the 1925 census]] The Nazis rose to power while unemployment was very high,<ref name=econ161>{{cite web |author=J. Bradford DeLong |date=February 1997 |url=http://econ161.berkeley.edu/TCEH/Slouch_Purge15.html |title=Slouching Towards Utopia?: The Economic History of the Twentieth Century -XV. Nazis and Soviets- |access-date=15 August 2007 |publisher=University of California at Berkeley and NBER |url-status=dead |archive-url=https://web.archive.org/web/20080511190923/http://econ161.berkeley.edu/TCEH/Slouch_Purge15.html |archive-date=11 May 2008}}</ref> but achieved [[full employment]] later thanks to massive public works programmes such as the [[Deutsche Reichsbahn|''Reichsbahn'']], ''[[Reichspost]]'', and the ''[[Reichsautobahn]]'' projects.<ref>{{cite book|last1=Gaettens|first1=Richard|title=Geschichte der Inflationen : vom Altertum bis zur Gegenwart |date=1982 |publisher=Battenberg |location=München |isbn=3-87045-211-0 |pages=279–298|edition=Nachdr.}}<!--|access-date=18 August 2014--></ref> In 1935 [[German rearmament|rearmament]] in contravention of the [[Treaty of Versailles]] added to the economy.<ref name=econ161/><ref>{{cite book|last1=Lee|first1=Stephen|title=Weimar and Nazi Germany|date=1996|publisher=Heinemann|location=Oxford|isbn=043530920X|pages=63}}</ref> The post-1931 financial crisis economic policies of [[Fiscal policy|expansionary fiscal policies]] (as Germany was off the [[gold standard]]) was advised by their non-Nazi Minister of Economics, [[Hjalmar Schacht]],<ref name="econ161" /> who in 1933 became the president of the central bank. Schacht later resigned from the post in 1938 and was replaced by [[Hermann Göring]]. The trading policies of the Third Reich aimed at [[Autarky|self-sufficiency]] but with a lack of raw materials Germany would have to maintain trade links but on [[Bilateralism|bilateral]] preferences, [[foreign exchange controls]], [[import quota]]s, and [[Export subsidy|export subsidies]] under what was called the "New Plan"(''Neuer Plan'') of 19 September 1934.<ref name="Braun">Hans-Joachim Braun, ''"The German Economy in the Twentieth Century"'', Routledge, 1990, p. 101</ref> The "New Plan" was based on trade with less developed countries who would trade raw materials for German industrial goods saving currency.<ref>{{cite book|last1=Lee|first1=Stephen|title=Weimar and Nazi Germany|date=1996|publisher=Heinemann|location=Oxford|isbn=043530920X|pages=60}}</ref> [[Southern Europe]] was preferable to Western Europe and North America as there could be no trade blockades.<ref name="braun1990">Hans-Joachim Braun, ''"The German Economy in the Twentieth Century"'', Routledge, 1990, p. 102</ref> This policy became known as the ''Grosswirtschaftsraum'' ("greater economic area") policy. Eventually, the Nazi party developed strong relationships with [[big business]]<ref name="bigbiz">Arthur Schweitzer, ''"Big Business in the Third Reich"'', Bloomington, Indiana University Press, 1964, p. 288</ref> and abolished [[Trade unions in Germany|trade unions]] in 1933 in order to form the [[Reich Labour Service]] (RAD), [[German Labour Front]] (DAF) to set working hours, [[Beauty of Labour]] (SDA) which set working conditions, and [[Strength Through Joy|Strength through Joy]] (KDF) to ensure sports clubs for workers.<ref>{{cite book|last1=Reynoldson|first1=Fiona|title=Weimar and Nazi Germany|date=1996|publisher=Heinemann|location=Oxford|isbn=0435308602|pages=49|edition=Foundation}}<!--|access-date=19 August 2014--></ref> ===West Germany=== {{See also|Wirtschaftswunder}} [[File:VW Käfer Baujahr 1966.jpg|thumb|The [[Volkswagen Beetle]] was an icon of West German reconstruction.]] Beginning with the [[Monetary reform|replacement]] of the [[Reichsmark]] with the [[Deutsche Mark]] as legal tender, a lasting period of low inflation and rapid industrial growth was overseen by the government led by [[Chancellor of Germany|German Chancellor]] [[Konrad Adenauer]] and his minister of economics, [[Ludwig Erhard]], raising West Germany from total wartime devastation to one of the most developed nations in modern Europe. In 1953 it was decided that Germany was to repay $1.1 billion of the aid it had received. The last repayment was made in June 1971. Apart from these factors, hard work and long hours at full capacity among the population in the 1950s, 1960s, and early 1970s and extra labour supplied by thousands of ''[[Gastarbeiter]]'' ("guest workers") provided a vital base for the economic upturn. ===East Germany=== {{Main|Economy of the German Democratic Republic}} [[File:AWZ Trabant 601S, Verkehrszentrum des Deutschen Museums.JPG|thumb|The [[Trabant]] was an icon of East Germany.]] By the early 1950s, the Soviet Union had seized reparations in the form of agricultural and industrial products and demanded further heavy reparation payments.<ref name="Norman M. Naimark 1949. pp. 167-9">Norman M. Naimark. ''The Russians in Germany: A History of the Soviet Zone of Occupation, 1945–1949.'' Harvard University Press, 1995. {{ISBN|0-674-78405-7}} pp. 167-9</ref> [[Silesia]] with the [[Upper Silesian Coal Basin]], and [[Szczecin|Stettin]], a prominent natural port, were lost to [[Polish People's Republic|Poland]]. Exports from West Germany exceeded $323 billion in 1988. In the same year, East Germany exported $30.7 billion worth of goods; 65% to other communist states.<ref name="tol0807">{{cite news |title=Germany starts recovery from €2,000bn union |url=http://www.timesonline.co.uk/tol/news/world/europe/article2317382.ece |newspaper=Times Online |date=24 August 2007 |access-date=12 October 2009 |location=London |first=Roger |last=Boyes |url-status=dead |archive-url=https://web.archive.org/web/20100529132954/http://www.timesonline.co.uk/tol/news/world/europe/article2317382.ece |archive-date=29 May 2010}}</ref> East Germany had zero unemployment.<ref name="tol0807"/> Car markers like the [[Automobilwerk Eisenach]] and the [[HQM Sachsenring GmbH]] produced icons of the East German economy like the [[Trabant|Trabant line]] and the [[Wartburg (marque)|Wartburg line]]. ===Federal Republic=== [[File:Containershipxinshanghai.jpg|thumb|{{As of|2013}}, Germany is the third-largest exporter and third-largest importer in the world, producing the largest trade surplus as a national economy.]] 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%).<ref name=gdpstat>[http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/DE/Content/Statistiken/VolkswirtschaftlicheGesamtrechnungen/Inlandsprodukt/Tabellen/Content75/BruttoinlandVierteljahresdaten,property=file.xls Bruttoinlandsprodukt (Vierteljahres- und Jahresangaben)] {{webarchive|url=https://web.archive.org/web/20101113234123/http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/DE/Content/Statistiken/VolkswirtschaftlicheGesamtrechnungen/Inlandsprodukt/Tabellen/Content75/BruttoinlandVierteljahresdaten,property=file.xls |date=13 November 2010}} Statistisches Bundesamt.</ref> Unemployment was also chronically high.<ref name=ciafactbook>{{cite web |url=https://www.cia.gov/the-world-factbook/countries/germany/ |title=CIA Factbook: Germany |publisher=Cia.gov |access-date=2014-08-13 }}</ref> Due to these problems, together with [[Demographics of Germany|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 concept|Hartz I - IV]].<ref name=ciafactbook/> In the later part of the first decade of 2000, the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living and that its effects are limited and temporary.<ref name=ciafactbook/> The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and [[Great Recession in Europe|European recession]] cycle.<ref>{{cite news | url=https://www.theguardian.com/world/2008/nov/14/oecd-recession-germany-inflation-deflation | title=Germany officially in recession as OECD expects US to lead recovery | newspaper=The Guardian | date=14 November 2008 | location=London | first=Kathryn | last=Hopkins | access-date=1 May 2010 | url-status=live | archive-url=https://web.archive.org/web/20130904060335/http://www.theguardian.com/world/2008/nov/14/oecd-recession-germany-inflation-deflation | archive-date=4 September 2013}}</ref> German industrial output dropped to 3.6% in September vis-à-vis August.<ref>{{cite news |last=Thesing |first=Gabi |url=https://www.bloomberg.com/apps/news?pid=20601087&sid=aV1q1nQoldKc&refer=home |title=bloomberg.com, German Economy Enters Worst Recession in 12 Years |publisher=Bloomberg.com |date=2008-11-13 |access-date=2014-08-13 |url-status=live |archive-url=https://web.archive.org/web/20100613163056/http://www.bloomberg.com/apps/news?pid=20601087 |archive-date=13 June 2010}}</ref><ref>[https://www.nytimes.com/2008/11/13/business/worldbusiness/13iht-14germany.17791168.html?_r=0 German economy falls into recession] {{webarchive|url=https://web.archive.org/web/20160723024510/http://www.nytimes.com/2008/11/13/business/worldbusiness/13iht-14germany.17791168.html?_r=0 |date=23 July 2016}}, New York Times, 2008-11-13</ref> In January 2009 the German government under [[Angela Merkel]] approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates.<ref>{{cite news|url=http://www.france24.com/en/20090106-germany-agrees-new-50-billion-euro-stimulus-plan |title=Germany agrees on 50-billion-euro stimulus plan |publisher=France 24 |date=6 January 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110513022443/http://www.france24.com/en/20090106-germany-agrees-new-50-billion-euro-stimulus-plan |archive-date=13 May 2011}}</ref> Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports - primarily from outside the eurozone - and relatively steady consumer demand.<ref name=ciafactbook/> Germany is a founding member of the EU, the [[G8]], and the [[G20]], and was the world's largest exporter from 2003 to 2008. In 2011 it remained the [[List of countries by exports|third largest exporter]]<ref name="CIA exports">{{cite web| url = http://www.worldstopexports.com/germanys-top-10-exports/2061| title = Country Comparison :: Exports| work = The World Factbook| publisher = [[Central Intelligence Agency]]| access-date = 9 August 2012| issn = 1553-8133| url-status = live| archive-url = https://web.archive.org/web/20131028034433/http://www.worldstopexports.com/germanys-top-10-exports/2061| archive-date = 28 October 2013}}</ref> and third largest importer.<ref name="CIA imports">{{cite web| url = https://www.cia.gov/library/publications/the-world-factbook/rankorder/2087rank.html| title = Country Comparison :: Imports| work = The World Factbook| publisher = [[Central Intelligence Agency]]| access-date = 9 August 2012| issn = 1553-8133| url-status = dead| archive-url = https://web.archive.org/web/20081004070323/https://www.cia.gov/library/publications/the-world-factbook//rankorder/2087rank.html| archive-date = 4 October 2008}}</ref> Most of the country's exports are in engineering, especially machinery, automobiles, chemical goods, and metals.<ref name="CIA">{{cite web| url = https://www.cia.gov/the-world-factbook/countries/germany/| title = CIA Factbook| access-date = 2 August 2009| author = CIA| author-link = Central Intelligence Agency}}</ref> Germany is a leading producer of wind turbines and solar-power technology.<ref>{{cite web |url=http://www.german-renewable-energy.com/Renewables/Navigation/Englisch/wind-power.html |archive-url=https://web.archive.org/web/20061210163253/http://www.german-renewable-energy.com/Renewables/Navigation/Englisch/wind-power.html |archive-date=10 December 2006 |title=Wind Power |publisher=Federal Ministry of Economics and Technology |access-date=27 March 2011}}</ref> Annual trade fairs and congresses are held in cities throughout Germany.<ref>{{cite web|title=Euro Fair Statistics 2008 |publisher=AUMA Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. |page=12 |author=UFI, the Global Association of the Exhibition Industry |year=2008 |url=http://www.auma.de/_pages/d/16_Download/download/FKM/EuroFairStatistics_2008.pdf |access-date=24 September 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110718201111/http://www.auma.de/_pages/d/16_Download/download/FKM/EuroFairStatistics_2008.pdf |archive-date=18 July 2011}}</ref> 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.<ref>{{cite news| url= http://www.spiegel.de/international/business/0,1518,805554,00.html| title= Defying the Euro Crisis| work= Spiegel Online| date= 27 December 2011| url-status= live| archive-url= https://web.archive.org/web/20111227161452/http://www.spiegel.de/international/business/0,1518,805554,00.html| archive-date= 27 December 2011}}</ref> Through 2012, Germany's economy continued to be stronger relative to local neighbouring nations.<ref>[https://www.nytimes.com/2012/04/29/world/europe/germany-looks-to-southern-europe-to-fill-jobs.html Brain Drain Feared as German Jobs Lure Southern Europeans] {{webarchive|url=https://web.archive.org/web/20170126091539/http://www.nytimes.com/2012/04/29/world/europe/germany-looks-to-southern-europe-to-fill-jobs.html |date=26 January 2017}} 28 April 2012</ref> In 2023, Germany experienced economic difficulties as a result of the closure of Russian natural gas resources due to [[International sanctions during the Russian invasion of Ukraine|international sanctions]] following the [[Russian invasion of Ukraine]].<ref>{{Cite web |date=2023-09-19 |title=Germany went from envy of the world to the worst-performing major developed economy. What happened? |url=https://apnews.com/article/germany-economy-energy-crisis-russia-8a00eebbfab3f20c5c66b1cd85ae84ed |access-date=2023-10-23 |website=AP News |language=en}}</ref> Germany imported 55% of its gas from Russia at the time when Russia started the invasion in 2022.<ref name="brookings.edu">{{Cite web |title=How did Germany fare without Russian gas? |url=https://www.brookings.edu/articles/how-did-germany-fare-without-russian-gas/ |access-date=2023-12-28 |website=Brookings |language=en-US}}</ref> Amid a [[Global energy crisis (2021–present)|global energy crisis]], Chancellor [[Olaf Scholz]] committed to weaken dependence on [[Russia in the European energy sector|Russian energy imports]] by halting certification of [[Nord Stream 2]], while also committing to his long-term predecessor Angela Merkel's policy of [[Nuclear power in Germany|phasing out nuclear energy]].<ref>{{cite news |date=9 June 2022 |title=Scholz and liberal finance minister clash over nuclear phase-out |work=[[Euractiv]] |url=https://www.euractiv.com/section/energy-environment/news/scholz-and-liberal-finance-minister-clash-over-nuclear-phase-out/}}</ref><ref>{{cite news |date=14 September 2022 |title=How Bad Will the German Recession Be? |work=Der Spiegel |url=https://www.spiegel.de/international/business/energy-crisis-fallout-how-bad-will-the-german-recession-be-a-9e1f479e-5fef-4e62-b5ca-2f9e87b9bbca}}</ref><ref name="brookings.edu"/> As of December 2023, Germany is the third largest economy in [[List of countries by GDP (nominal)|nominal]] terms in the world after the United States and China, and the largest economy in Europe. It is the third largest export nation in the world.<ref>{{Cite web |date=5 December 2023 |title=Economic Key Facts Germany |url=https://kpmg.com/de/en/home/insights/overview/economic-key-facts-germany.html}}</ref> In April 2024, a report by the [[German Economic Institute]] revealed that despite attempts to expand into other markets, the German economy remains heavily reliant on China for various products and raw materials.<ref>{{Cite web |title=Ahead of Scholz trip, study shows German economy still dependent on China |website=[[Reuters]] |url=https://www.reuters.com/markets/europe/ahead-scholz-trip-study-shows-german-economy-still-dependent-china-2024-04-09/}}</ref> During 2024, the German economy experienced its second consecutive year of contraction. Europe's largest economy declined by 0.2% over the year,<ref>{{Cite web |title=Gross domestic product down 0.2% in 2024 |url=https://www.destatis.de/EN/Press/2025/01/PE25_019_811.html |access-date=2025-01-22 |website=Federal Statistical Office |language=en}}</ref> following a 0.3% contraction in 2023. Germany's trade surplus with the United States, reported by [[Reuters]] to have reached a record €65 billion (£54.7 billion) during the first 11 months of 2024, has made the nation a likely target for potential tariffs from Donald Trump's administration.<ref>{{Cite news |last=Wagner |first=Rene |date=2025-01-10 |title=Germany's trade surplus with US reaches record high as Trump tariffs loom |url=https://www.reuters.com/markets/europe/germanys-trade-surplus-with-us-reaches-record-high-trump-tariffs-loom-2025-01-10/ |access-date=2025-01-22 |work=[[Reuters]]}}</ref> The economic climate has also been affected by widespread layoffs across major German corporations. Companies such as Siemens, Bosch, Thyssenkrupp, and Deutsche Bahn, all featured in the Fortune 500, are estimated to have collectively cut over 60,000 jobs during the first 10 months of 2024.<ref>{{Cite web |date=2025-01-21 |title=Siemens Layoffs 2024: What to Know About the Latest Siemens Job Cuts |url=https://markets.businessinsider.com/news/stocks/siemens-layoffs-2024-what-to-know-about-the-latest-siemens-job-cuts-1033432797 |access-date=2025-01-22 |website=markets.businessinsider.com |language=en}}</ref> Bosch, a highly regarded manufacturing firm, announced in November alone plans to reduce its workforce by approximately 7,000 employees.<ref>{{Cite web |title=Bosch Lays Off 7,000 Employees, CEO Stefan Hartung Says More Layoffs Cant Be Ruled Out |url=https://www.news18.com/business/bosch-lays-off-7000-employees-ceo-stefan-hartung-says-more-layoffs-cant-be-ruled-out-9109016.html |access-date=2025-01-22 |website=News18 |language=en}}</ref> ==Data == The following table shows the main economic indicators in 1980–2024 (with IMF staff estimates in 2025–2029). Inflation below 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=134,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref> {{static row numbers}}{{sticky header}} {| class="wikitable sortable sticky-header" style="text-align:center;" !Year !GDP<br><small>(Bil. US$PPP)</small> !GDP per capita<br><small>(US$ PPP)</small> !GDP<br><small>(Bil. US$nominal)</small> !GDP per capita<br><small>(US$ nominal)</small> !GDP growth<br><small>(real)</small> !Inflation rate<br><small>(Percent)</small> !Unemployment<br><small>(Percent)</small> !Government debt<br><small>(in % of GDP)</small> |- |1980 |922.4 |12,003.5 |856.8 |11,150.4 |{{Increase}}1.3 |{{IncreaseNegative}}5.4 |3.4 |n/a |- |1981 |{{Increase}}1,010.8 |{{Increase}}13,128.9 |{{Decrease}}720.9 |{{Decrease}}9,363.8 |{{Increase}}0.1 |{{IncreaseNegative}}6.3 |{{IncreaseNegative}}4.8 |n/a |- |1982 |{{Increase}}1,064.8 |{{Increase}}13,840.2 |{{Decrease}}696.1 |{{Decrease}}9,048.0 | {{Decrease}}-0.8 |{{IncreaseNegative}}5.3 |{{IncreaseNegative}}6.7 |n/a |- |1983 |{{Increase}}1,123.7 |{{Increase}}14,656.9 |{{Decrease}}694.4 |{{Increase}}9,058.3 |{{Increase}}1.6 |{{Increase}}3.3 |{{IncreaseNegative}}8.1 |n/a |- |1984 |{{Increase}}1,197.1 |{{Increase}}15,678.3 |{{Decrease}}654.3 |{{Decrease}}8,569.0 |{{Increase}}2.8 |{{Increase}}2.4 |{{Steady}}8.1 |n/a |- |1985 |{{Increase}}1,262.0 |{{Increase}}16,569.6 |{{Increase}}663.5 |{{Increase}}8,710.7 |{{Increase}}2.2 |{{Increase}}2.1 |{{Steady}}8.1 |n/a |- |1986 |{{Increase}}1,318.6 |{{Increase}}17,299.9 |{{Increase}}947.6 |{{Increase}}12,432.4 |{{Increase}}2.4 | {{DecreasePositive}}-0.1 |{{DecreasePositive}}7.8 |n/a |- |1987 |{{Increase}}1,371.1 |{{Increase}}17,985.8 |{{Increase}}1,179.2 |{{Increase}}15,468.0 |{{Increase}}1.5 |{{Increase}}0.2 |{{Steady}}7.8 |n/a |- |1988 |{{Increase}}1,472.5 |{{Increase}}19,198.8 |{{Increase}}1,271.3 |{{Increase}}16,575.2 |{{Increase}}3.7 |{{Increase}}1.3 |{{DecreasePositive}}7.7 |n/a |- |1989 |{{Increase}}1,590.1 |{{Increase}}20,527.2 |{{Decrease}}1,262.0 |{{Decrease}}16,291.6 |{{Increase}}3.9 |{{Increase}}2.8 |{{DecreasePositive}}6.8 |n/a |- |1990 |{{Increase}}1,744.0 |{{Increase}}22,090.7 |{{Increase}}1,604.5 |{{Increase}}20,323.3 |{{Increase}}5.7 |{{Increase}}2.7 |{{DecreasePositive}}6.2 |n/a |- |1991 |{{Increase}}1,893.4 |{{Increase}}23,675.1 |{{Increase}}1,882.5 |{{Increase}}23,539.0 |{{Increase}}5.0 |{{Increase}}3.5 |{{DecreasePositive}}5.5 |38.8 |- |1992 |{{Increase}}1,975.5 |{{Increase}}24,541.0 |{{Increase}}2,146.1 |{{Increase}}26,660.2 |{{Increase}}2.0 |{{IncreaseNegative}}5.0 |{{IncreaseNegative}}6.6 |{{IncreaseNegative}}41.3 |- |1993 |{{Increase}}2,002.5 |{{Increase}}24,739.0 |{{Decrease}}2,080.1 |{{Decrease}}25,697.1 | {{Decrease}}-1.0 |{{Increase}}4.5 |{{IncreaseNegative}}7.8 |{{IncreaseNegative}}44.9 |- |1994 |{{Increase}}2,098.4 |{{Increase}}25,859.6 |{{Increase}}2,220.2 |{{Increase}}27,359.7 |{{Increase}}2.6 |{{Increase}}2.7 |{{IncreaseNegative}}8.4 |{{IncreaseNegative}}47.3 |- |1995 |{{Increase}}2,174.8 |{{Increase}}26,747.9 |{{Increase}}2,595.3 |{{Increase}}31,919.0 |{{Increase}}1.5 |{{Increase}}1.7 |{{DecreasePositive}}8.2 |{{IncreaseNegative}}54.7 |- |1996 |{{Increase}}2,237.4 |{{Increase}}27,464.3 |{{Increase}}2,507.4 |{{Increase}}30,779.0 |{{Increase}}1.0 |{{Increase}}1.3 |{{IncreaseNegative}}8.9 |{{IncreaseNegative}}57.6 |- |1997 |{{Increase}}2,318.3 |{{Increase}}28,441.6 |{{Decrease}}2,221.5 |{{Decrease}}27,254.4 |{{Increase}}1.9 |{{Increase}}1.5 |{{IncreaseNegative}}9.7 |{{IncreaseNegative}}58.7 |- |1998 |{{Increase}}2,393.6 |{{Increase}}29,389.3 |{{Increase}}2,250.8 |{{Increase}}27,636.1 |{{Increase}}2.1 |{{Increase}}0.6 |{{DecreasePositive}}9.4 |{{IncreaseNegative}}59.3 |- |1999 |{{Increase}}2,479.1 |{{Increase}}30,447.8 |{{Decrease}}2,216.1 |{{Decrease}}27,217.0 |{{Increase}}2.1 |{{Increase}}0.6 |{{DecreasePositive}}8.6 |{{IncreaseNegative}}59.9 |- |2000 |{{Increase}}2,608.3 |{{Increase}}32,020.9 |{{Decrease}}1,967.9 |{{Decrease}}24,158.2 |{{Increase}}2.9 |{{Increase}}1.4 |{{DecreasePositive}}8.0 |{{DecreasePositive}}58.8 |- |2001 |{{Increase}}2,710.6 |{{Increase}}33,252.0 |{{Decrease}}1,966.4 |{{Decrease}}24,122.4 |{{Increase}}1.6 |{{Increase}}1.9 |{{DecreasePositive}}7.8 |{{DecreasePositive}}57.6 |- |2002 |{{Increase}}2,746.5 |{{Increase}}33,666.4 |{{Increase}}2,100.9 |{{Increase}}25,752.7 | {{Decrease}}-0.2 |{{Increase}}1.3 |{{IncreaseNegative}}8.6 |{{IncreaseNegative}}59.3 |- |2003 |{{Increase}}2,785.7 |{{Increase}}34,159.4 |{{Increase}}2,534.1 |{{Increase}}31,074.3 | {{Decrease}}-0.5 |{{Increase}}1.1 |{{IncreaseNegative}}9.7 |{{IncreaseNegative}}62.7 |- |2004 |{{Increase}}2,894.1 |{{Increase}}35,529.1 |{{Increase}}2,851.0 |{{Increase}}35,000.6 |{{Increase}}1.2 |{{Increase}}1.8 |{{IncreaseNegative}}10.3 |{{DecreasePositive}}64.3 |- |2005 |{{Increase}}3,011.2 |{{Increase}}37,021.2 |{{Increase}}2,895.0 |{{Increase}}35,592.7 |{{Increase}}0.9 |{{Increase}}1.9 |{{IncreaseNegative}}11.0 |{{IncreaseNegative}}66.5 |- |2006 |{{Increase}}3,223.9 |{{Increase}}39,716.2 |{{Increase}}3,046.5 |{{Increase}}37,530.2 |{{Increase}}3.9 |{{Increase}}1.8 |{{DecreasePositive}}10.0 |{{DecreasePositive}}65.8 |- |2007 |{{Increase}}3,406.8 |{{Increase}}42,063.6 |{{Increase}}3,484.5 |{{Increase}}43,022.0 |{{Increase}}2.9 |{{Increase}}2.3 |{{DecreasePositive}}8.5 |{{DecreasePositive}}63.1 |- |2008 |{{Increase}}3,504.1 |{{Increase}}43,386.4 |{{Increase}}3,808.4 |{{Increase}}47,154.0 |{{Increase}}0.9 |{{Increase}}2.8 |{{DecreasePositive}}7.4 |{{IncreaseNegative}}64.6 |- |2009 |{{Decrease}}3,330.1 |{{Decrease}}41,376.4 |{{Decrease}}3,476.0 |{{Decrease}}43,189.4 | {{Decrease}}-5.5 |{{Increase}}0.2 |{{DecreasePositive}}7.2 |{{IncreaseNegative}}71.7 |- |2010 |{{Increase}}3,510.3 |{{Increase}}43,723.6 |{{Decrease}}3,471.0 |{{Increase}}43,233.5 |{{Increase}}4.1 |{{Increase}}1.1 |{{DecreasePositive}}6.6 |{{IncreaseNegative}}80.4 |- |2011 |{{Increase}}3,717.6 |{{Increase}}46,310.6 |{{Increase}}3,824.2 |{{Increase}}47,637.9 |{{Increase}}3.8 |{{Increase}}2.5 |{{DecreasePositive}}5.5 |{{DecreasePositive}}77.8 |- |2012 |{{Increase}}3,804.6 |{{Increase}}47,305.3 |{{Decrease}}3,600.2 |{{Decrease}}44,763.5 |{{Increase}}0.5 |{{Increase}}2.2 |{{DecreasePositive}}5.1 |{{IncreaseNegative}}79.2 |- |2013 |{{Increase}}3,884.3 |{{Increase}}48,164.5 |{{Increase}}3,808.1 |{{Increase}}47,220.3 |{{Increase}}0.4 |{{Increase}}1.6 |{{DecreasePositive}}5.0 |{{DecreasePositive}}76.8 |- |2014 |{{Increase}}4,037.8 |{{Increase}}49,859.4 |{{Increase}}3,966.8 |{{Increase}}48,983.3 |{{Increase}}2.2 |{{Increase}}0.8 |{{DecreasePositive}}4.7 |{{DecreasePositive}}73.8 |- |2015 |{{Increase}}4,142.7 |{{Increase}}50,714.4 |{{Decrease}}3,423.9 |{{Decrease}}41,914.9 |{{Increase}}1.7 |{{Increase}}0.7 |{{DecreasePositive}}4.4 |{{DecreasePositive}}70.6 |- |2016 |{{Increase}}4,277.8 |{{Increase}}51,947.7 |{{Increase}}3,536.8 |{{Increase}}42,949.1 |{{Increase}}2.3 |{{Increase}}0.4 |{{DecreasePositive}}3.9 |{{DecreasePositive}}67.6 |- |2017 |{{Increase}}4,472.6 |{{Increase}}54,110.3 |{{Increase}}3,761.8 |{{Increase}}45,510.5 |{{Increase}}2.7 |{{Increase}}1.7 |{{DecreasePositive}}3.6 |{{DecreasePositive}}64.0 |- |2018 |{{Increase}}4,665.4 |{{Increase}}56,273.3 |{{Increase}}4,053.8 |{{Increase}}48,897.2 |{{Increase}}1.1 |{{Increase}}1.9 |{{DecreasePositive}}3.2 |{{DecreasePositive}}60.7 |- |2019 |{{Increase}}4,925.0 |{{Increase}}59,270.7 |{{Decrease}}3,957.6 |{{Decrease}}47,629.1 |{{Increase}}1.0 |{{Increase}}1.4 |{{DecreasePositive}}3.0 |{{DecreasePositive}}58.6 |- |2020 |{{Decrease}}4,880.4 |{{Decrease}}58,685.8 |{{Decrease}}3,937.0 |{{Decrease}}47,341.8 | {{Decrease}}-4.1 |{{Increase}}0.4 |{{IncreaseNegative}}3.6 |{{IncreaseNegative}}67.9 |- |2021 |{{Increase}}5,237.2 |{{Increase}}62,950.3 |{{Increase}}4,351.2 |{{Increase}}52,300.6 |{{Increase}}3.7 |{{Increase}}3.2 |{{Steady}}3.6 |{{Steady}}67.9 |- |2022 |{{Increase}}5,687.3 |{{Increase}}67,869.3 |{{Decrease}}4,166.9 |{{Decrease}}49,725.3 |{{Increase}}1.4 |{{IncreaseNegative}}8.7 |{{DecreasePositive}}3.1 |{{DecreasePositive}}64.8 |- |2023 |{{Increase}}5,876.4 |{{Increase}}69,531.6 |{{Increase}}4,527.0 |{{Increase}}53,565.0 | {{Decrease}}-0.3 |{{IncreaseNegative}}6.0 |{{DecreasePositive}}3.0 |{{DecreasePositive}}62.7 |- |2024 |{{Increase}}6,017.2 |{{Increase}}70,930.4 |{{Increase}}4,710.0 |{{Increase}}55,521.3 |{{Decrease}}-0.2 |{{Increase}}2.4 |{{IncreaseNegative}}3.4 |{{Steady}}62.7 |- |2025e |{{Increase}}6,174.7 |{{Increase}}72,660.5 |{{Increase}}4,921.6 |{{Increase}}57,914.4 |{{Increase}}0.8 |{{Increase}}2.0 |{{DecreasePositive}}3.2 |{{DecreasePositive}}62.1 |- |2026e |{{Increase}}6,377.0 |{{Increase}}74,941.0 |{{Increase}}5,117.2 |{{Increase}}60,136.0 |{{Increase}}1.4 |{{Increase}}2.0 |{{DecreasePositive}}3.1 |{{DecreasePositive}}60.9 |- |2027e |{{Increase}}6,568.7 |{{Increase}}77,132.7 |{{Increase}}5,268.0 |{{Increase}}61,858.9 |{{Increase}}1.1 |{{Increase}}2.0 |{{Steady}}3.0 |{{DecreasePositive}}59.9 |- |2028e |{{Increase}}6,745.8 |{{Increase}}79,185.5 |{{Increase}}5,415.5 |{{Increase}}63,569.3 |{{Increase}}0.8 |{{Increase}}2.0 |{{Steady}}3.0 |{{DecreasePositive}}59.0 |- |2029e |{{Increase}}6,920.6 |{{Increase}}81,221.3 |{{Increase}}5,566.1 |{{Increase}}65,324.3 |{{Increase}}0.7 |{{Increase}}2.0 |{{Steady}}3.0 |{{DecreasePositive}}57.8 |} ===Companies=== {{See also|List of companies of Germany|List of largest German companies}} Of the world's 500 largest stock-market-listed companies measured by revenue in 2024, the [[Fortune Global 500]], 29 are headquartered in Germany.<ref>{{cite web |title=Global 500 |url=https://fortune.com/global500/2019/search/?hqcountry=Germany |url-status=live |archiveurl=https://web.archive.org/web/20210620152854/https://fortune.com/global500/2019/search/?hqcountry=Germany |archivedate=20 June 2021 |accessdate=30 March 2020 |website=Fortune}}</ref> 40 Germany-based companies are included in the [[DAX]], the most popular German stock market index. [[List of largest companies in Europe by revenue|26 of Europe's 100 largest]] are German, among them [[Allianz]], the world's largest [[List of largest insurance companies|insurance company]] and one of the largest [[List of largest financial services companies by revenue|financial services groups]] and [[List of asset management firms|asset managers]], [[List of largest companies in Europe by revenue|largest in Europe]]; [[Munich Re]], also one of the largest insurance companies; [[Mercedes-Benz Group|Daimler]], [[Volkswagen]], and [[BMW]], among the biggest car markers in the world;<ref>{{cite web | url=https://www.statista.com/statistics/232958/revenue-of-the-leading-car-manufacturers-worldwide/ | title=Leading car manufacturers by revenue 2022 }}</ref> [[Siemens]], the [[Fortune Global 500|world's biggest]] industrial machinery company; [[Deutsche Telekom]], one of the [[List of telephone operating companies|world's largest telecommunication companies]]; [[Bayer]], among the biggest [[List of largest biomedical companies by revenue|biomedical companies]]; [[BASF]], the world's biggest [[List of largest chemical producers|chemical producer]],<ref>{{cite web | url=https://cen.acs.org/business/finance/CENs-Global-Top-50-2024/102/i22 | title=C&EN's Global Top 50 chemical firms for 2024 }}</ref> and [[SAP]], Europe's [[List of the largest software companies|biggest software company]].<ref>{{cite magazine |url=https://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:_filter:All%20industries_filter:Germany |title=Forbes Global 2000: Germany's Largest Companies |magazine=Forbes |access-date=2018-03-29 |url-status=live |archive-url=http://archive.wikiwix.com/cache/20150408120044/https://www.forbes.com/global2000/list/#page:1_sort:0_direction:asc_search:_filter:All%20industries_filter:Germany |archive-date=8 April 2015}}</ref> Other major companies include [[Lufthansa]], Europe's largest airline, [[DHL Group|Deutsche Post]], the largest logistics company worldwide,<ref>{{cite web | url=https://de.statista.com/statistik/daten/studie/30749/umfrage/umsatz-deutsche-post-dhl/#:~:text=Rund%2094%2C4%20Milliarden%20Euro,Post%20DHL%20im%20Jahr%202022 | title=DHL Group - Umsatz bis 2022 }}</ref> [[Deutsche Bahn]], the largest railway company in the world,<ref>{{cite web |url=https://fortune.com/ranking/global500/ |title=Global 500 2023 |work=Fortune |access-date=24 December 2023 |url-access=subscription}}</ref><ref>{{cite web |title=Members to the Supervisory Board of Deutsche Bahn AG |url= http://www.deutschebahn.com/en/group/ataglance/supervisory_board.html |url-status=dead |archive-url= https://web.archive.org/web/20121025152444/http://www.deutschebahn.com/en/group/ataglance/supervisory_board.html |archive-date=25 October 2012 }}</ref><ref>{{cite web |url= http://www.deutschebahn.com/site/bahn/en/db__group/corporate__group/ata__glance/facts__figures/facts__figures.html |title=Deutsche Bahn AG at a glance |publisher=Deutsche Bahn |archive-url= https://web.archive.org/web/20090426010642/http://www.deutschebahn.com/site/bahn/en/db__group/corporate__group/ata__glance/facts__figures/facts__figures.html |archive-date=26 April 2009 |url-status=dead}}</ref> [[Bosch (company)|Bosch]], the world's [[List of the largest automotive suppliers|largest automotive supplier]], [[Uniper]], the world's largest energy company, and [[Aldi]] and [[Schwarz Gruppe]], Europe's largest retailers.<ref>{{cite web |url=https://www.forbes.com/sites/callyrussell/2020/01/09/who-are-the-10-biggest-retailers-in-the-world/ |title=10 biggest retailers in the world |website=[[Forbes]] |access-date=2020-08-06}}</ref> Germany is recognised for its specialised [[Small and medium-sized enterprises|small and medium enterprises]], known as the ''Mittelstand'' model. SMEs account for more than 99 percent of German companies.<ref>{{Cite web|title=The power of SMEs|url=https://www.tatsachen-ueber-deutschland.de/en/global-trade-partner/power-smes|access-date=2021-06-02|website=Facts about Germany|language=en}}</ref> Around 1,000 of these companies are global market leaders in their segment and are labelled [[hidden champions]].<ref>{{cite news |author=Gavin, Mike |date=23 September 2010 |url=http://www.businessweek.com/news/2010-09-23/germany-has-1-000-market-leading-companies-manager-magazin-says.html |title=Germany Has 1,000 Market-Leading Companies, Manager-Magazin Says |newspaper=Businessweek |location=New York |access-date=27 March 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110430195209/http://www.businessweek.com/news/2010-09-23/germany-has-1-000-market-leading-companies-manager-magazin-says.html |archive-date=30 April 2011}}</ref> From 1991 to 2010, 40,301 [[mergers and acquisitions]] with an involvement of German firms with a total known value of 2,422 bil. EUR have been announced.<ref>{{cite web|url=http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_Germany |title=Statistics on Mergers & Acquisitions (M&A) - M&A Courses | Company Valuation Courses | Mergers & Acquisitions Courses |publisher=Imaa-institute.org |access-date=2014-08-13 |url-status=dead |archive-url=https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html |archive-date=6 January 2012}}</ref> The largest transactions<ref>{{cite web|url=http://www.imaa-institute.org/statistics-mergers-acquisitions.html#TopMergersAcquisitions_Germany |title=Statistics on Mergers & Acquisitions (M&A) - M&A Courses | Company Valuation Courses | Mergers & Acquisitions Courses |publisher=Imaa-institute.org |access-date=2014-08-13 |url-status=dead |archive-url=https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html |archive-date=6 January 2012}}</ref> since 1991 are: the acquisition of [[Mannesmann]] by [[Vodafone]] for 204.8 bil. EUR in 1999, the merger of [[Mercedes-Benz Group|Daimler-Benz]] with [[Chrysler]] to form DaimlerChrysler in 1998 valued at 36.3 bil. EUR. Berlin developed an international [[startup ecosystem]] and became a leading location for venture capital funded firms in the European Union.<ref>{{cite web|last1=Frost|first1=Simon|title=Berlin outranks London in start-up investment|url=http://www.euractiv.com/sections/innovation-industry/berlin-outranks-london-start-investment-317140|website=euractiv.com|date=28 August 2015|access-date=28 October 2015|url-status=live|archive-url=https://web.archive.org/web/20151106224621/http://www.euractiv.com/sections/innovation-industry/berlin-outranks-london-start-investment-317140|archive-date=6 November 2015}}</ref> The sector with the highest number of companies registered in Germany is Services with 1,443,708 companies followed by Finance, Insurance, and Real Estate and Construction with 480,593 and 173,167 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/germany | title=Industry Breakdown of Companies in Germany | website=HitHorizons}}</ref> [[File:Wolfsburg VWHochhaus.jpg|thumb|[[Volkswagen Group|Volkswagen]] is the largest company in the European Union and the largest car manufacturer in the world by revenue.<ref>{{cite web | url=https://fortune.com/ranking/global500/search/ | title=Fortune Global 500 }}</ref>]] The list includes the largest German companies by revenue in 2011: {| class="wikitable sortable" style="text-align:right;" |- style="background:#efefef;" ! style="text-align:center;"| Rank<ref>{{cite news |url=https://money.cnn.com/magazines/fortune/global500/2010/countries/Germany.html |title=Global 500: Countries – Germany |work=Forbes |date=26 July 2010 |access-date=27 March 2011 |url-status=live |archive-url=https://web.archive.org/web/20110323123710/https://money.cnn.com/magazines/fortune/global500/2010/countries/Germany.html |archive-date=23 March 2011}}</ref>|| style="text-align:center;"| Name|| style="text-align:center;"| Headquarters|| style="text-align:center;"| Ticker|| style="text-align:center;"| Revenue<br />(Mil. €) || style="text-align:center;"| Profit<br />(Mil. €) || style="text-align:center;"| Employees<br />(World) |- | style="text-align:center;"| {{0}}1. || style="text-align:left;"| [[Volkswagen Group]] || style="text-align:left;"| [[Wolfsburg]] || VOWG || 159,000 || 15,800 || 502,000 |- | style="text-align:center;"| {{0}}2. || style="text-align:left;"| [[E.ON]] || style="text-align:left;"| [[Essen]] || EONGn || 113,000 || −1,900 || 79,000 |- | style="text-align:center;"| {{0}}3. || style="text-align:left;"| [[Daimler AG|Daimler]] || style="text-align:left;"| [[Stuttgart]] || DAIGn || 107,000 || 6,000 || 271,000 |- | style="text-align:center;"| {{0}}4. || style="text-align:left;"| [[Siemens]] || style="text-align:left;"| [[Berlin]], [[Munich|München]]|| SIEGn || 74,000 || 6,300 || 360,000 |- | style="text-align:center;"| {{0}}5. || style="text-align:left;"| [[BASF]] || style="text-align:left;"| [[Ludwigshafen|Ludwigshafen am Rhein]]|| BASFn || 73,000 || 6,600 || 111,000 |- | style="text-align:center;"| {{0}}6. || style="text-align:left;"| [[BMW]] || style="text-align:left;"| München || BMWG || 69,000 || 4,900 || 100,000 |- | style="text-align:center;"| {{0}}7. || style="text-align:left;"| [[Metro AG|Metro]] || style="text-align:left;"| [[Düsseldorf]] || MEOG || 67,000 || 740 || 288,000 |- | style="text-align:center;"| {{0}}8. || style="text-align:left;"| [[Schwarz Gruppe]] || style="text-align:left;"| [[Neckarsulm]] || || 63,000 || N/A || 315,000 |- | style="text-align:center;"| {{0}}9. || style="text-align:left;"| [[Deutsche Telekom]] || style="text-align:left;"| [[Bonn]] || DTEGn || 59,000 || 670 || 235,000 |- | style="text-align:center;"| {{0}}10. || style="text-align:left;"| [[Deutsche Post]] || style="text-align:left;"| Bonn || DPWGn || 53,000 || 1,300 || 471,000 |- | style="text-align:center;"| — || style="text-align:left;"| [[Bosch (company)|Bosch]]|| style="text-align:left;" | [[Gerlingen]] || || 73,100 || 2,300 || 390,000 |- | style="text-align:center;"| — || style="text-align:left;"| [[Uniper]] || style="text-align:left;"| Düsseldorf || UNSE01 || 67,300 || || 13,000 |- | style="text-align:center;"| — || style="text-align:left;"| [[Allianz]] || style="text-align:left;"| München || ALVG || 104,000 || 2,800 || 141,000 |- | style="text-align:center;"| — || style="text-align:left;"| [[Deutsche Bank]] || style="text-align:left;"| [[Frankfurt|Frankfurt am Main]]|| DBKGn || || 4,300 || 101,000 |} ===Mergers and acquisitions=== Since German reunification, there have been 52,258 mergers or acquisitions deals inbound or outbound in Germany. The most active year in terms of value was 1999 with a total value of 48 billion EUR, twice as much as the runner up which was 2006 with 24 billion EUR (see graphic "M&A in Germany"). Here is a list of the top 10 deals (ranked by value) that include a German company. The Vodafone–Mannesmann deal is still the biggest deal in global history.<ref>{{Cite news|url=https://imaa-institute.org/mergers-acquisitions-germany/|title=Information and Statistics about Mergers & Acquisitions (M&A) Germany|work=IMAA-Institute|access-date=2018-02-22|language=en-US|url-status=live|archive-url=https://web.archive.org/web/20180222225950/https://imaa-institute.org/mergers-acquisitions-germany/|archive-date=22 February 2018}}</ref> {| class="wikitable" !Rank !Date !Acquirer !Acquirer Nation !Target !Target Nation !Value<br>(bil. USD) |- |1 |14 Nov 1999 |Vodafone AirTouch PLC |United Kingdom |Mannesmann AG |Germany |202.79 |- |2 |18 May 2016 |Bayer AG |Germany |Monsanto Co |United States |56.60 |- |3 |6 May 1998 |Daimler-Benz AG |Germany |Chrysler Corp |United States |40.47 |- |4 |16 Aug 2016 |Linde AG |Germany |Praxair Inc |United States |35.16 |- |5 |21 Oct 1999 |Mannesmann AG |Germany |Orange PLC |United Kingdom |32.59 |- |6 |24 Jul 2000 |Deutsche Telekom AG |Germany |VoiceStream Wireless Corp |United States |29.40 |- |7 |17 May 1999 |Rhone-Poulenc SA |France |Hoechst AG |Germany |21.92 |- |8 |23 Mar 2006 |Bayer AG |Germany |Schering AG |Germany |21.40 |- |9 |01 Apr 2001 |Allianz AG |Germany |Dresdner Bank AG |Germany |19.66 |- |10 |30 May 2005 |Unicredito Italiano SpA |Italy |Bayerische Hypo- und Vereins |Germany |18.26 |} ==Economic region== {{Main|Eurozone}} [[File:<!--EU2019-->BlueEurozone 2019.svg|thumb|Germany is part of a monetary union, the [[eurozone]] (dark blue), and of the [[European single market|EU single market]]. ]] Germany as a federation is a polycentric country and does not have a single economic centre. The stock exchange is located in [[Frankfurt|Frankfurt am Main]], the largest Media company ([[Bertelsmann|Bertelsmann SE & Co. KGaA]]) is headquartered in [[Gütersloh]]; the largest car manufacturers are in [[Wolfsburg]] ([[Volkswagen]]), [[Stuttgart]] ([[Mercedes-Benz]] and [[Porsche]]), and [[Munich]] ([[Audi]] and [[BMW]]).<ref name="ReferenceA">Gürtler, Detlef: Wirtschaftsatlas Deutschland. Rowohlt Berlin, 2010</ref> Germany is an advocate of closer European economic and political integration. Its commercial policies are increasingly determined by agreements among European Union (EU) members and EU [[single market]] legislation. Germany introduced the common European currency, the [[euro]] on 1 January 1999. Its monetary policy is set by the [[European Central Bank]] in Frankfurt. The southern states ("''Bundesländer''"), especially Bayern, Baden-Württemberg, and Hessen, are economically stronger than the northern states. One of Germany's traditionally strongest (and at the same time oldest) economic regions is the [[Ruhr|Ruhr area]] in the west, between [[Duisburg]] and [[Dortmund]]. 27 of the country's 100 largest companies are located there. In recent years, however, the area, whose economy is based on natural resources and heavy industry, has seen a substantial rise in unemployment (2010: 8.7%).<ref name="ReferenceA"/> The economy of [[Bavaria|Bayern]] and [[Baden-Württemberg]], the states with the lowest number of unemployed people (2018: 2.7%, 3.1%), on the other hand, is based on high-value products. Important sectors are automobiles, electronics, aerospace, and biomedicine, among others. Baden-Württemberg is an industrial centre especially for the automobile and machine-building industry and the home of brands like Mercedes-Benz (Daimler), Porsche and Bosch.<ref name="ReferenceA"/> With the reunification on 3 October 1990, Germany began the major task of reconciling the economic systems of the two former republics. Interventionist economic planning ensured gradual development in eastern Germany up to the level of former West Germany, but the [[standard of living]] and annual income remains significantly higher in western German states.<ref name="FR">Berg, S., Winter, S., Wassermann, A. [http://www.spiegel.de/international/spiegel/0,1518,373639,00.html The Price of a Failed Reunification] {{webarchive|url=https://web.archive.org/web/20071120093208/http://www.spiegel.de/international/spiegel/0,1518,373639,00.html |date=20 November 2007}} Spiegel Online International. 5 September 2005. Retrieved 28 November 2006.</ref> The modernisation and integration of the eastern German economy continues to be a long-term process scheduled to last until the year 2019, with annual transfers from west to east amounting to roughly $80 billion. The overall unemployment rate has consistently fallen since 2005 and reached a 20-year low in 2012. The country in July 2014 began legislating to introduce a federally mandated minimum wage which would come into effect on 1 January 2015.<ref name="GermanyWages">{{cite news|title=Germany may become 22nd EU state with federal minimum wage|url=http://www.germanynews.net/index.php/sid/223558107/scat/0b761d844c35f1be/ht/Germany-may-become-22nd-EU-state-with-federal-minimum-wage|access-date=7 July 2014|publisher=Germany News.Net|url-status=dead|archive-url=https://web.archive.org/web/20140714163733/http://www.germanynews.net/index.php/sid/223558107/scat/0b761d844c35f1be/ht/Germany-may-become-22nd-EU-state-with-federal-minimum-wage|archive-date=14 July 2014}}</ref>{{update inline|date=April 2018}} On 25 May 2023, a declaration of a recession in the German economy was made. It was reported that [[Gross domestic product|Gross Domestic Product]] (GDP) had contracted by 0.3% between January and March. This contraction was largely due to increased prices which discouraged consumer spending. The statistics office in Germany reported that household spending had dropped by 1.2% in the first quarter of the year.<ref>{{Cite news|last=Stickings|first=Tim|date=2023-05-25|title=Germany slides into recession as high prices hit home|language=en|work=The National|url=https://www.thenationalnews.com/world/europe/2023/05/25/germany-slides-into-recession-as-high-prices-hit-home/l|access-date=2023-06-21}}{{Dead link|date=January 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> ===German states=== [[File:Düsseldorf Panorama.jpg|thumb|upright=1.1|[[Rhine-Ruhr metropolitan region]] in [[North Rhine-Westphalia]] has the second largest GDP in the European Union (€536 billion). [[List of EU metropolitan regions by GDP#2021 ranking of top four German metropolitan regions|Four of the EU's 5 biggest metropolitan regions by GDP]] are in Germany.]] {{Main|List of German states by GRP}} {|class="wikitable sortable" style="text-align:right" |+ List of German states by GRP in 2022 |- align=center valign=middle !States !Rank !GRP <br/>(in billions [[Euro|EUR€]]) !Share of <br>GDP (%) |- style="background:#e6e6e6" |align=left| '''{{flag|Germany}}''' |— |'''3,867.050''' |'''100''' |- |align=left|{{flag|North Rhine-Westphalia}} |1 |793.790 |20.5 |- |align=left|{{flag|Bavaria}} |2 |716.784 |18.5 |- |align=left|{{flag|Baden-Württemberg}} |3 |572.837 |14.8 |- |align=left|{{flag|Lower Saxony}} |4 |339.414 |8.8 |- |align=left|{{flag|Hesse}} |5 |323.352 |8.4 |- |align=left|{{flag|Berlin}} |6 |179.379 |4.6 |- |align=left|{{flag|Rhineland-Palatinate}} |7 |171.699 |4.4 |- |align=left|{{flag|Saxony}} |8 |146.511 |3.8 |- |align=left|{{flag|Hamburg}} |9 |144.220 |3.7 |- |align=left|{{flag|Schleswig-Holstein}} |10 |112.755 |2.9 |- |align=left|{{flag|Brandenburg}} |11 |88.800 |2.3 |- | align="left" |{{flag|Saxony-Anhalt}} |13 |75.436 |2.0 |- | align="left" |{{flag|Thuringia}} |12 |71.430 |1.8 |- |align=left|{{flag|Mecklenburg-Vorpommern}} |14 |53.440 |1.4 |- | align="left" |{{flag|Bremen}} |16 |38.698 |1.0 |- | align="left" |{{flag|Saarland}} |15 |38.505 |1.0 |} ===Wealth=== {{Main|List of Germans by net worth}} [[File:Hasso Plattner.JPG|thumb|upright|[[Hasso Plattner]]]] The following top 10 list of German [[billionaire]]s is based on an annual assessment of wealth and assets compiled and published by ''[[Forbes]]'' magazine on 1 March 2016.<ref>{{cite news|url=https://www.forbes.com/billionaires/list#version:static_country:Germany|title=The World's Billionaires|access-date=2016-07-04|work=Forbes|url-status=live|archive-url=https://web.archive.org/web/20130403013841/http://www.forbes.com/billionaires/list/#version:static_country:Germany|archive-date=3 April 2013}}</ref> # '''$27.9 billion''' Albrecht family # '''$20.3 billion''' [[Theo Albrecht Jr.]] # '''$18.5 billion''' [[Susanne Klatten]] # '''$18.1 billion''' [[Georg F. W. Schaeffler|Georg Schaeffler]] # '''$16.4 billion''' [[Dieter Schwarz]] # '''$15.6 billion''' [[Stefan Quandt]] # '''$15.4 billion''' [[Michael Otto (businessman)|Michael Otto]] # '''$11.7 billion''' [[Heinz Hermann Thiele]] # '''$10 billion''' [[Klaus-Michael Kühne]] # '''$9.5 billion''' [[Hasso Plattner]] [[Wolfsburg]] is the city in Germany with the country's highest per capita GDP, at $128,000. The following top 10 list of German cities with the highest per capita GDP is based on a study by the [[German Economic Institute|Cologne Institute for Economic Research]] on 31 July 2013.<ref>{{cite web|url=http://www.bild.de/geld/wirtschaft/bruttoinlandsprodukt/top-50-das-sind-deutschlands-power-staedte-31595934.bild.html|title=These Are Germany's Power Cities|date=12 August 2013|access-date=2014-03-01|url-status=live|archive-url=https://web.archive.org/web/20140313030548/http://www.bild.de/geld/wirtschaft/bruttoinlandsprodukt/top-50-das-sind-deutschlands-power-staedte-31595934.bild.html|archive-date=13 March 2014}}</ref> # '''$128,000''' [[Wolfsburg]], [[Lower Saxony]] # '''$114,281''' [[Frankfurt|Frankfurt am Main]], [[Hesse]] # '''$108,347''' [[Schweinfurt]], [[Bavaria]] # '''$104,000''' [[Ingolstadt]], Bavaria # '''$99,389''' [[Regensburg]], Bavaria # '''$92,525''' [[Düsseldorf]], [[North Rhine-Westphalia]] # '''$92,464''' [[Ludwigshafen|Ludwigshafen am Rhein]], [[Rhineland-Palatinate]] # '''$91,630''' [[Erlangen]], Bavaria # '''$91,121''' [[Stuttgart]], [[Baden-Württemberg]] # '''$88,692''' [[Ulm]], Baden-Württemberg ==Sectors== [[File:2006German exports.PNG|thumb|German exports in 2006]] {{see also|:Category:Industry in Germany}} Germany has a [[social market economy]] characterised by a highly qualified [[Workforce|labour force]], a developed [[infrastructure]], a large [[capital stock]], a low level of corruption,<ref>{{cite web |url=http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table |title=CPI 2009 table |publisher=Transparency International |access-date=18 November 2009}}</ref> and a high level of [[innovation]].<ref>{{cite web |url=http://www.nam.org/innovationreport.pdf |title=The Innovation Imperative in Manufacturing: How the United States Can Restore Its Edge |access-date=26 September 2010 |url-status=dead |archive-url=https://web.archive.org/web/20091122140719/http://www.nam.org/innovationreport.pdf |archive-date=22 November 2009 }}</ref> It has the largest national economy in Europe, the [[List of countries by GDP (nominal)|third largest by nominal GDP]] in the world, and ranked [[List of countries by GDP (PPP)|fifth by GDP (PPP)]] in 2023.<ref name="IMFWEODE"/> The [[Tertiary sector of the economy|service sector]] contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%.<ref>"German Economy Experiences Record Growth in 2010" [http://www.germany.info/Vertretung/usa/en/__pr/P__Wash/2011/01/12__GDP__2010__PR.html German Embassy Press Release 12 January 2011] {{webarchive|url=https://web.archive.org/web/20111101061046/http://www.germany.info/Vertretung/usa/en/__pr/P__Wash/2011/01/12__GDP__2010__PR.html |date=1 November 2011}}</ref> ===Primary=== {{See also|Agriculture in Germany}} [[File:Agrivoltaics pilot plant at Heggelbach Farm in Germany 4.jpg|right|thumb|Germany is the EU´s second-largest agriculture goods exporter and fourth-largest worldwide<ref>https://www.youtube.com/watch?v=Uvh_Nz_gkrg</ref>]] In 2010 [[Agriculture in Germany|agriculture]], [[forestry]], and [[mining]] accounted for only 0.9% of Germany's gross domestic product (GDP) and employed only 2.4% of the population,<ref name="CIA"/> down from 4% in 1991. Agriculture is extremely productive, and Germany can cover 90% of its nutritional needs with domestic production. Germany is the third-largest agricultural producer in the European Union after France and Italy. Germany's principal agricultural products are potatoes, wheat, barley, sugar beets, fruit, and cabbages.<ref>{{Cite web |title=Germany - Agricultural Production and Forest Cover {{!}} Britannica |url=https://www.britannica.com/place/Germany/Agriculture-forestry-and-fishing |access-date=2023-06-25 |website=www.britannica.com |language=en}}</ref><ref>https://www.insidermonkey.com/blog/5-largest-agricultural-exporters-in-the-world-1276635/5/</ref> Despite the country's high level of industrialisation, almost one-third of its territory is covered by forest.<ref>[http://rainforests.mongabay.com/deforestation/2000/Germany.htm ''31.7% —or about 11,076,000 hectares— of Germany is forested''] {{webarchive|url=https://web.archive.org/web/20100221210403/http://rainforests.mongabay.com/deforestation/2000/Germany.htm |date=21 February 2010}}, mongabay.com, 2005.</ref> The forestry industry provides for about two-thirds of domestic consumption of wood and wood products, so Germany is a net importer of these items. [[File:Garzweiler surface mine, October 2018, -02.jpg|left|thumb|[[Surface mining|Strip mining]] lignite at [[Garzweiler surface mine|Tagebau Garzweiler]] near [[Grevenbroich]], Germany]] The German soil is relatively poor in raw materials. Only [[lignite]] (brown coal) and [[potash]] salt (''Kalisalz'') are available in significant quantities. However, the former GDR's [[Wismut (company)|Wismut]] mining company produced a total of 230,400 tonnes of uranium between 1947 and 1990 and made East Germany the fourth-largest producer of uranium ore worldwide (largest in USSR's sphere of control) at the time. Oil, natural gas, and other resources are, for the most part, imported from other countries.<ref name="Gürtler, Detlef 2010">Gürtler, Detlef: Wirtschaftsatlas Deutschland. Rowohlt Berlin, 2010.</ref> Potash salt is mined in the centre of the country ([[Lower Saxony|Niedersachsen]], [[Saxony-Anhalt|Sachsen-Anhalt]], and [[Thuringia|Thüringen]]). The most important producer is [[K+S]] (formerly Kali und Salz AG).<ref name="Gürtler, Detlef 2010"/> Germany's bituminous coal deposits were created more than 300 million years ago from swamps which extended from the present-day [[Southern England|South England]], over the Ruhr area to [[Poland]]. Lignite deposits developed similarly, but during a later period, about 66 million years ago. Because the wood is not yet completely transformed into coal, brown coal contains less energy than bituminous coal.<ref name="Gürtler, Detlef 2010"/> [[Lignite]] is extracted in the extreme western and eastern parts of the country, mainly in [[North Rhine-Westphalia|Nordrhein-Westfalen]], [[Saxony|Sachsen]], and [[Brandenburg]]. Considerable amounts are burned in [[Coal-fired power station|coal plants]] near the mining areas, to produce electricity. Transporting lignite over far distances is not economically feasible, therefore the plants are located practically next to the extraction sites. [[Bituminous coal]] is mined in Nordrhein-Westfalen and Saarland. Most power plants burning bituminous coal operate on imported material, therefore the plants are located not only near to the mining sites, but throughout the country.<ref name="Gürtler, Detlef 2010"/> In 2019, the country was the world's 3rd largest producer of [[selenium]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-selenium.pdf| title = USGS Selenium Production Statistics}}</ref> the world's 5th largest producer of potash,<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-potash.pdf| title = USGS Potash Production Statistics}}</ref> the world's 5th largest producer of [[boron]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-boron.pdf| title = USGS Boron Production Statistics}}</ref> the world's 7th largest producer of [[Lime (material)|lime]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lime.pdf| title = USGS Lime Production Statistics}}</ref> the world's 13th largest producer of [[Fluorite|fluorspar]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-fluorspar.pdf| title = USGS Fluorspar Production Statistics}}</ref> the world's 14th largest producer of [[feldspar]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-feldspar.pdf| title = USGS Fluorspar Production Statistics}}</ref> the world's 17th largest producer of [[graphite]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-graphite.pdf| title = USGS Graphite Production Statistics}}</ref> the world's 18th largest producer of [[sulfur]],<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-sulfur.pdf| title = USGS Sulfur Production Statistics}}</ref> in addition to being the 4th largest world producer of [[salt]].<ref>{{cite web| url = https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-salt.pdf| title = USGS Salt Production Statistics}}</ref> ===Industry=== {{See also|Mittelstand|Automotive industry in Germany}} [[File:BASF1.jpg|thumb|The world's largest coherent chemistry plant [[BASF]] in [[Ludwigshafen]]]] Industry and construction accounted for 30.7% of the gross domestic product in 2017 and employed 24.2% of the workforce.<ref name="CIAWFGM"/> Germany excels in the production of [[Car|automobiles]], [[machine]]ry, electrical equipment, and chemicals. With the manufacture of 5.2 million vehicles in 2009, Germany was the world's fourth-largest producer and largest exporter of automobiles. [[List of automobile manufacturers of Germany|German automotive companies]] enjoy an extremely strong position in the so-called premium segment, with a combined world market share of about 90%. All new automobiles sold in Germany must be [[Zero-emissions vehicle|zero-emission vehicles]] from 2035.<ref>{{cite news |title='We are a car country': German conservatives commit to reverse combustion engine ban |url=https://www.euractiv.com/section/elections/news/we-are-a-car-country-german-conservatives-commit-to-reverse-combustion-engine-ban/ |work=Euractiv |date=11 March 2024}}</ref> Small- to medium-sized manufacturing firms (''[[Mittelstand]]'' companies) which specialise in technologically advanced niche products and are often family-owned form a major part of the German economy.<ref>{{cite web|author1=Venohr, Bernd |author2=Meyer, Klaus E. |title=The German Miracle Keeps Running: How Germany's Hidden Champions Stay Ahead in the Global Economy |url=http://www.berndvenohr.de/download/veroeffentlichungen/forschung/The_German_Miracle_Keeps_Running.pdf |work=Working Paper 30 |publisher=FHW Berlin |year=2007 |access-date=9 October 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090326211823/http://www.berndvenohr.de/download/veroeffentlichungen/forschung/The_German_Miracle_Keeps_Running.pdf |archive-date=26 March 2009}}</ref> It is estimated that about 1,500 German companies occupy a top three position in their respective market segment worldwide. In about two thirds of all industry sectors German companies belong to the top three competitors.<ref>{{cite web |author=Venohr, Bernd |title=The power of uncommon common sense management principles - The secret recipe of German Mittelstand companies - Lessons for large and small companies |url=http://www.druckersociety.at/repository/2010/day01/15'30-17'00/Venohr_101118_PPT_Beamerversion.pdf |year=2010 |access-date=8 December 2010 |url-status=live |archive-url=https://web.archive.org/web/20111017010124/http://www.druckersociety.at/repository/2010/day01/15%2730-17%2700/Venohr_101118_PPT_Beamerversion.pdf |archive-date=17 October 2011}}</ref> Germany is the only country among the top five arms exporters that is not a permanent member of the [[United Nations Security Council]].<ref>{{cite news |last=Wall |first=Robert |url=https://www.bloomberg.com/news/2013-03-17/china-replaces-u-k-in-top-five-arms-exporters-headed-by-u-s-.html |title=China Replaces U.K. in Top-Five Arms Exporters Headed by U.S. |publisher=Bloomberg.com |date=2013-03-17 |access-date=2014-08-13 |url-status=live |archive-url=https://web.archive.org/web/20140813213550/http://www.bloomberg.com/news/2013-03-17/china-replaces-u-k-in-top-five-arms-exporters-headed-by-u-s-.html |archive-date=13 August 2014}}</ref> ===Services=== {{See also|Tourism in Germany}} {{multiple image | align = right | image1 = Hintersee.jpg | width1 = 180 | alt1 = | caption1 = | image2 = Museumsinsel Berlin Juli 2021 1 (cropped) b.jpg | width2 = 210 | alt2 = | caption2 = | footer = [[Bavaria]] (l.) is a tourism destination while [[Berlin]] (r.) is a centre of creative industries, research, and education. }} In 2017 services constituted 68.6% of gross domestic product (GDP), and the sector employed 74.3% of the workforce.<ref name="CIA"/> 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%). Germany is the seventh most visited country in the world,<ref name="april11">{{cite journal|url=http://www.unwto.org/facts/eng/pdf/barometer/UNWTO_Barom11_iu_april_excerpt.pdf |title=Interim Update |journal=UNWTO World Tourism Barometer |access-date=26 June 2011 |publisher=UNWTO |date=April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20150101005051/http://www.unwto.org/facts/eng/pdf/barometer/UNWTO_Barom11_iu_april_excerpt.pdf |archive-date=1 January 2015}}</ref><ref>{{cite web |url=http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/final_annual_report_pdf_3.pdf |title=UNWTO Annual Report 2010 |publisher=[[World Tourism Organization|UNWTO]]|year=2011 |url-status=dead |archive-url=https://web.archive.org/web/20140611081149/http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/final_annual_report_pdf_3.pdf |archive-date=11 June 2014}}</ref> with a total of 407 million overnights during 2012.<ref name="deutschertourismusverband">[http://www.deutschertourismusverband.de/fileadmin/Mediendatenbank/PDFs/Zahlen_Daten_Fakten_2012_aktuell.pdf Zahlen Daten Fakten 2012] {{Webarchive|url=https://web.archive.org/web/20150101015058/http://www.deutschertourismusverband.de/fileadmin/Mediendatenbank/PDFs/Zahlen_Daten_Fakten_2012_aktuell.pdf |date=1 January 2015 }} (in German), German National Tourist Board</ref> This number includes 68.83 million nights by foreign visitors. In 2012, over 30.4 million international tourists arrived in Germany. [[Berlin]] has become the third most visited city destination in Europe.<ref>{{cite web|url=http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_highlights14_en.pdf |title=Tourism Highlights 2014 edition |publisher=UNWTO |access-date=26 March 2015 |url-status=dead |archive-url=https://web.archive.org/web/20150214004935/http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_highlights14_en.pdf |archive-date=14 February 2015}}</ref> Additionally, more than 30% of Germans spend their holiday in their own country, with the biggest share going to [[Mecklenburg-Vorpommern]]. Domestic and international travel and tourism combined directly contribute over EUR43.2 billion to German GDP. Including indirect and induced impacts, the industry contributes 4.5% of German GDP and supports 2 million jobs (4.8% of total employment).<ref>{{cite web|url=http://wttc.org/site_media/uploads/downloads/germany2013_1.pdf |title=2013 Travel & Tourism Economic Impact Report Germany |publisher=WTTC |access-date=26 November 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131203001157/http://wttc.org/site_media/uploads/downloads/germany2013_1.pdf |archive-date=3 December 2013}}</ref> The largest annual international trade fairs and congresses are held in several German cities such as Hannover, Frankfurt, and Berlin.<ref>{{cite web|url=http://www.german-renewable-energy.com/Renewables/Navigation/Englisch/wind-power.html |title=Wind Power |access-date=2011-03-27 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20061210163253/http://www.german-renewable-energy.com/Renewables/Navigation/Englisch/wind-power.html |archive-date=10 December 2006}} Federal Ministry of Economics and Technology (Germany) Retrieved 30 November 2006.</ref> ==Government finances== {{Main|Taxation in Germany|Federal budget of Germany}} [[File:German bonds.webp|thumb|300px|{{center|German bonds}} [[Inverted yield curve]] in 2008 and [[Negative interest on excess reserves|Negative interest rates]] 2014–2022 {{legend-line|#000000 solid 3px|30 year}} {{legend-line|#DD0000 solid 3px|10 year}} {{legend-line|#FFCE00 solid 3px|2 year}} {{legend-line|#970E53 solid 3px|1 year}} {{legend-line|#73FDEA solid 3px|3 month}} ]] The [[debt-to-GDP ratio]] of Germany had its peak in 2010 when it stood at 80.3% and decreased since then.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/weorept.aspx?sy=2005&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=67&pr1.y=6&c=122%2C136%2C124%2C941%2C423%2C137%2C939%2C181%2C172%2C138%2C132%2C182%2C134%2C936%2C174%2C961%2C178%2C184&s=GGXWDG%2CGGXWDG_NGDP&grp=0&a= |title=World Economic Outlook Database, April 2015, General government gross debt (National currency, Percent of GDP) |publisher=International Monetary Fund |date=April 2015 |access-date=26 January 2016 |url-status=live |archive-url=https://web.archive.org/web/20160205090730/http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/weorept.aspx?sy=2005&ey=2020&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=67&pr1.y=6&c=122%2C136%2C124%2C941%2C423%2C137%2C939%2C181%2C172%2C138%2C132%2C182%2C134%2C936%2C174%2C961%2C178%2C184&s=GGXWDG%2CGGXWDG_NGDP&grp=0&a= |archive-date=5 February 2016}}</ref> According to [[Eurostat]], the [[Government debt|government gross debt]] of Germany amounts to €2,152.0 billion or 71.9% of its GDP in 2015.<ref>{{cite web |url=http://ec.europa.eu/eurostat/documents/2995521/7141153/2-22012016-AP-EN.pdf/8288af1f-6f6f-4d2e-91ba-d5c45f07f2e2 |title=Third quarter of 2015 compared with second quarter of 2015 - Government debt fell to 91.6 % of GDP in euro area |publisher=Eurostat |date=22 January 2016 |access-date=26 January 2016 |url-status=live |archive-url=https://web.archive.org/web/20160124213139/http://ec.europa.eu/eurostat/documents/2995521/7141153/2-22012016-AP-EN.pdf/8288af1f-6f6f-4d2e-91ba-d5c45f07f2e2 |archive-date=24 January 2016}}</ref> The federal government achieved a budget surplus of €12.1 billion ($13.1 billion) in 2015.<ref>{{cite web |url=https://www.wsj.com/articles/german-government-achieves-historic-budget-surplus-1452691320 |title=German Government Achieves 'Historic' Budget Surplus |publisher=The World Street Journal |date=13 January 2016 |access-date=26 January 2016 |url-status=live |archive-url=https://web.archive.org/web/20160313173915/http://www.wsj.com/articles/german-government-achieves-historic-budget-surplus-1452691320 |archive-date=13 March 2016}}</ref> Germany's [[credit rating]] by [[Credit rating agency|credit rating agencies]] [[S&P Global Ratings|Standard & Poor's]], [[Moody's Investors Service|Moody's]], and [[Fitch Ratings]] stands at the highest possible rating ''AAA'' with a stable outlook in 2016.<ref>{{cite news |url=https://www.reuters.com/article/idUSFit94584220160108 |title=Reuters: Fitch Affirms Germany at 'AAA'; Outlook Stable |work=Reuters |date=8 January 2016 |access-date=26 January 2016 |url-status=live |archive-url=https://web.archive.org/web/20160202054602/http://www.reuters.com/article/idUSFit94584220160108 |archive-date=2 February 2016}}</ref> Germany's "debt clock" (''Schuldenuhr'') reversed for the first time in 20 years in January 2018. It is now currently increasing at 10,424.00 per second (October 2020).<ref>{{Cite news|url=https://www.ft.com/content/e4ec4bce-f099-11e7-b220-857e26d1aca4|title=German 'debt clock' reverses for first time in 20 years|date=4 January 2018|website=Financial Times|archive-url=https://web.archive.org/web/20180104060441/https://www.ft.com/content/e4ec4bce-f099-11e7-b220-857e26d1aca4|archive-date=4 January 2018|url-status=live|access-date=4 January 2018|last1=Buck|first1=Tobias}}</ref> Economists generally see Germany's current account surplus as undesirable.<ref>{{cite web| url = http://www.igmchicago.org/surveys/german-and-european-economic-policy| url-status = dead| archive-url = https://web.archive.org/web/20200225003113/http://www.igmchicago.org/surveys/german-and-european-economic-policy| archive-date = 25 February 2020| title = German and European Economic Policy {{!}} IGM Forum}}</ref> ==Infrastructure== ===Energy=== {{Main|Energy in Germany}} Germany is the world's fifth-largest consumer of energy, and two-thirds of its primary energy was imported in 2002. In the same year, Germany was Europe's largest consumer of electricity, totaling 512.9 terawatt-hours. Government policy promotes energy conservation and the development of [[renewable energy]] sources, such as solar, [[Wind power|wind]], [[biomass]], hydroelectric, and [[Geothermal power|geothermal]] energy. As a result of energy-saving measures, [[Efficient energy use|energy efficiency]] has been improving since the beginning of the 1970s. The government has set the goal of meeting half the country's energy demands from renewable sources by 2050. Renewable energy also plays an increasing role in the labour market: Almost 700,000 people are employed in the energy sector. About 50 percent of them work with renewable energies.<ref>{{Cite web|url=https://www.tatsachen-ueber-deutschland.de/en/climate-and-energy/greentech-sector-future|title=Greentech – A Sector with a Future|website=Facts about Germany}}</ref> [[File:Windgermany.JPG|thumb|left|The largest [[solar power]] and [[Wind power in Europe|third-largest wind power]] capacity in the world is installed in Germany.]] In 2000, the [[First Schröder cabinet|red-green coalition under Chancellor Schröder]] and the [[Nuclear power in Germany|German nuclear power industry]] agreed to phase out all [[nuclear power plant]]s by 2021.<ref>{{Cite news|url=http://news.bbc.co.uk/2/hi/europe/4295389.stm|title=Germany split over green energy|date=25 February 2005|via=news.bbc.co.uk}}</ref> The [[Second Merkel cabinet|conservative coalition under Chancellor Merkel]] reversed this decision in January 2010, electing to keep plants open. The nuclear disaster of the Japanese nuclear plant [[Fukushima Daiichi Nuclear Power Plant|Fukushima]] in March 2011 however, changed the political climate fundamentally: Older nuclear plants have been shut down. Germany is seeking to have wind, solar, biogas, and other renewable energy sources play a bigger role, as the country looks to completely phase out nuclear power by 2022 and coal-fired power plants by 2038.<ref name=":0">{{Cite web|last=Welle|first=Deutsche|title=Germany: Coal tops wind as primary electricity source {{!}} DW {{!}} 13.09.2021|url=https://www.dw.com/en/germany-coal-tops-wind-as-primary-electricity-source/a-59168105|access-date=2021-10-28|website=DW.COM|language=en-GB}}</ref> Renewable energy yet still plays a more modest role in energy consumption, though German solar and wind power industries play a leading role worldwide. Germany has been called "the world's first major [[renewable energy]] economy".<ref name="renewableenergyworld.com"/><ref name="ise.fraunhofer.de"/> In 2009, Germany's total energy consumption (not just electricity) came from the following sources:<ref>{{cite web |url=http://www.bmwi.de/BMWi/Redaktion/Binaer/Energiedaten/energiegewinnung-und-energieverbrauch2-primaerenergieverbrauch.xls |title=Energy Consumption in Germany |language=de |access-date=2014-08-13 |url-status=dead |archive-url=https://web.archive.org/web/20110427062607/http://www.bmwi.de/BMWi/Redaktion/Binaer/Energiedaten/energiegewinnung-und-energieverbrauch2-primaerenergieverbrauch.xls |archive-date=27 April 2011}}</ref> oil 34.6%, natural gas 21.7%, lignite 11.4%, bituminous coal 11.1%, nuclear power 11.0%, hydro and wind power 1.5%, others 9.0%. In the first half of 2021, coal, natural gas, and nuclear energy comprised 56% of the total electricity fed into Germany's grid in the first half of 2021. Coal was the leader out of the conventional energy sources, comprising over 27% of Germany's electricity. Wind power's contribution to the electric grid was 22%.<ref name=":0" /> There are 3 major entry points for oil pipelines: in the northeast (the [[Druzhba pipeline]], coming from [[Gdańsk]]), west (coming from [[Rotterdam]]) and southeast (coming from [[Nelahozeves]]). The oil pipelines of Germany do not constitute a proper network, and sometimes only connect two different locations. Major oil refineries are located in or near the following cities: [[Schwedt]], [[Spergau]], [[Vohburg]], [[Burghausen, Altötting|Burghausen]], [[Karlsruhe]], [[Cologne]], [[Gelsenkirchen]], [[Lingen, Germany|Lingen]], [[Wilhelmshaven]], [[Hamburg]], and [[Heide]].<ref name="Detlef, Günter 2010. p.42">Detlef, Günter: Wirtschaftsatlas Deutschland. Rowohlt Berlin, 2010. p.42</ref> Germany's network of [[natural gas]] pipelines, on the other hand, is dense and well-connected. Imported pipeline gas comes mostly from [[Russia]], the [[Netherlands]], and the [[United Kingdom]]. ===Transport=== {{Main|Transport in Germany}} [[File:IC3 NIederlande in Frankfurt 249-dLd b.jpg|thumb|The [[ICE 3]] trainset, here run by [[Deutsche Bahn]], in [[Frankfurt]]]] With its central position in Europe, Germany is an important transportation hub. This is reflected in its dense and modern transportation networks. The extensive motorway (''[[Autobahn]]'') network ranks worldwide third largest in its total length and features a lack of blanket [[Speed limits in Germany|speed limits]] on the majority of routes.<ref name=adac>{{cite web | title= Germany's Autobahn faces blanket speed limits | date= May 2013 | url= http://recombu.com/cars/articles/news/germany-s-autobahn-faces-blanket-speed-limits | archive-url= https://archive.today/20141020120956/http://recombu.com/cars/articles/news/germany-s-autobahn-faces-blanket-speed-limits | url-status= dead | archive-date= 20 October 2014 }}</ref> Germany has established a polycentric network of [[high-speed rail|high-speed trains]]. The [[Intercity Express]] or ''ICE'' is the most advanced service category of the [[Deutsche Bahn]] and serves major German cities as well as destinations in neighbouring countries. The train maximum speed varies between 200 km/h and 320 km/h (125-200 mph). Connections are offered at either 30-minute, hourly, or two-hourly intervals.<ref>{{cite web|url=http://www.db.de/site/bahn/de/unternehmen/investor__relations/finanzberichte/geschaeftsbericht/geschaeftsbericht__2006.html |title=Geschäftsbericht 2006 der Deutschen Bahn AG |access-date=2011-03-27 |url-status=dead |archive-url=https://web.archive.org/web/20070809140315/http://www.db.de/site/bahn/de/unternehmen/investor__relations/finanzberichte/geschaeftsbericht/geschaeftsbericht__2006.html |archive-date=9 August 2007}}, Deutsche Bahn. Retrieved 19 October 2007.</ref> German railways are heavily subsidised, receiving €17.0 billion in 2014.<ref>{{cite web|title=German Railway Financing |url=https://www.deutschebahn.com/file/de/2192370/2RLvPOzueXgX19CucGFn4Wofp5E/2267530/data/finanz_eisenbahn_dtl.pdf |page=2 |url-status=dead |archive-url=https://web.archive.org/web/20160310165357/https://www.deutschebahn.com/file/de/2192370/2RLvPOzueXgX19CucGFn4Wofp5E/2267530/data/finanz_eisenbahn_dtl.pdf |archive-date=10 March 2016}}</ref> The largest German airports are [[Frankfurt Airport]] and [[Munich Airport]], both are global hubs of [[Lufthansa]]. Other major airports are [[Berlin Brandenburg Airport]], [[Düsseldorf Airport|Düsseldorf]], [[Hamburg Airport|Hamburg]], [[Hannover Airport|Hanover]], [[Cologne Bonn Airport|Cologne/Bonn]], and [[Stuttgart Airport|Stuttgart]]. ===Banking system=== {{multiple image | align = right | image1 = Deutsche Bank Taunusanlage.jpg | width1 = 130 | alt1 = | caption1 = [[Deutsche Bank]] [[Deutsche Bank Twin Towers|Twin Towers]] in [[Frankfurt]] | image2 = Berlin, Mitte, Behrenstrasse, Berliner Bank 05.jpg | width2 = 223 | alt2 = | caption2 = [[Deutscher Sparkassen- und Giroverband]] headquarters in Berlin }} Seven German banks are among the [[List of largest banks|biggest in the world]]. As of 2019, Germany is the country in Europe with the highest number of credit institutions: between 1,600 and 1,800.<ref>{{cite web|url=https://www-ilsole24ore-com.translate.goog/art/da-deutsche-sparkassen-3-pilastri-ingessati-banche-tedesche-ABS0rHsB?_x_tr_sl=it&_x_tr_tl=en&_x_tr_hl=it&_x_tr_pto=wapp&_x_tr_hist=true|title=From Deutsche to Sparkassen, the 3 "plastered" pillars of German banks|author=Isabella Bufacchi|date=27 April 2019}}</ref> The types of institutions are in strong [[competition]] with each other: 390 [[Sparkassen-Finanzgruppe|''Sparkassen'']] and 8 public [[Landesbank|''Landesbanken'']] groups (1,200 billion euros of [[transaction account|deposits]]), private [[commercial bank]]s ([[Deutsche Bank|DB]], [[Commerzbank]], and [[UniCredit|Unicredit]]-[[HypoVereinsbank]], for 780 billion), cooperative credit banks (700 billion euros), savings banks, and [[German Cooperative Financial Group|''Raiffeisen'']]. The total of the system is worth 3,800 billion. 75% of retail customer deposits are managed by [[savings bank]]s and cooperative credit banks. According to Eurostat, in 2022 Germany also recorded the highest European rate of gross [[saving]]s (19.98% of [[Per capita income|disposable income]]).<ref>{{cite web|url=https://it.euronews.com/business/2023/11/28/in-which-european-countries-do-you-save-the-most|title=In which European countries do you save the most?}}{{Dead link|date=January 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> ==Technology== {{Main|Science and technology in Germany}} [[File:Fächertextur.jpg|thumb|[[Liquid crystal]] as visualised by a polarizing microscope. Germany is a pioneer research centre for [[nanotechnology]] and [[Materials science|materials engineering]].<ref>[http://www.new-delhi.diplo.de/Vertretung/newdelhi/en/06/__HB__Science__Technology.html Research in Germany] {{webarchive|url=https://web.archive.org/web/20100820154147/http://www.new-delhi.diplo.de/Vertretung/newdelhi/en/06/__HB__Science__Technology.html |date=20 August 2010}} German Embassy, New Delhi. Retrieved 2010-28-08.</ref>]] Germany's achievements in sciences have been significant, and [[research and development]] efforts form an integral part of the economy.<ref>{{cite web|publisher=Federal Ministry of Education and Research|url=http://www.bmbf.de/en/1869.php|title=Germany's Technological Performance|date=11 January 2007|access-date=21 August 2011|url-status=dead|archive-url=https://web.archive.org/web/20110825093650/http://www.bmbf.de/en/1869.php|archive-date=25 August 2011}}</ref> Germany is also one of the leading countries in developing and using green technologies. Companies specialising in [[Environmental technology|green technology]] have an estimated turnover of €200 billion. German expertise in engineering, science, and research is eminently respectable. The lead markets of Germany's green technology industry are power generation, sustainable mobility, [[material efficiency]], energy efficiency, waste management and [[recycling]], sustainable [[Water resources|water management]].<ref>[[Roland Berger Strategy Consultants]]: ''Green Growth, Green Profit – How Green Transformation Boosts Business'' [[Palgrave Macmillan]], New York 2010, {{ISBN|978-0-230-28543-9}}</ref> Regarding triadic patents, Germany is in third place after the U.S. and Japan. With more than 26,500 registrations for patents submitted to the European Patent Office, Germany is the leading European nation. [[Siemens]], Bosch, and BASF, with almost 5,000 registrations for patents between them in 2008, are among the top 5 of more than 35,000 companies registering patents. Together with the U.S. and Japan, about patents for nano, bio, and new technologies Germany is one of the world's most active nations. With around one-third of triadic patents, Germany leads the way worldwide in the field of vehicle emission reduction.<ref>[http://www.tatsachen-ueber-deutschland.de/en/education-and-research/main-content-07/industry-strongly-engaged-in-research.html Industry strongly engaged in research] {{webarchive|url=https://web.archive.org/web/20111121032201/http://www.tatsachen-ueber-deutschland.de/en/education-and-research/main-content-07/industry-strongly-engaged-in-research.html |date=21 November 2011}} Facts about Germany. Retrieved 2010-29-08.</ref> According to [[Winfried Kretschmann]], who is premier of the region where Daimler is based, "China dominates the production of solar cells. Tesla is ahead in electric cars and Germany has lost the first round of digitalization to [[Google]], [[Apple Inc.|Apple]], and the like. Whether Germany has a future as an industrial economy will depend on whether we can manage the ecological and digital transformation of our economy".<ref>{{cite news|url=https://www.reuters.com/article/us-germany-election-economy-idUSKBN1AC1YC|title=Asleep at the wheel? Germany frets about economic car crash|first=Emma|last=Thomasson|website=reuters.com|date=28 July 2017|access-date=28 April 2018|url-status=live|archive-url=https://web.archive.org/web/20171001235048/http://www.reuters.com/article/us-germany-election-economy-idUSKBN1AC1YC|archive-date=1 October 2017}}</ref> ==Challenges== [[File:Electromobility Summit Berlin 2013 - Angela Merkel.JPG|thumb|Angela Merkel at the [[Electric vehicle|Electromobility]] conference in Berlin. All new cars sold in Germany must be [[Zero-emissions vehicle|zero-emission vehicles]] from 2035.<ref>{{cite news |title=EU countries approve 2035 phaseout of CO2-emitting cars |url=https://www.reuters.com/business/autos-transportation/eu-countries-poised-approve-2035-phaseout-co2-emitting-cars-2023-03-28/ |work=Reuters |date=29 March 2023}}</ref>]] Despite economic prosperity, Germany's biggest threat to future economic development is the nation's declining birthrate, which is among the lowest in the world. This is particularly prevalent in parts of society with higher education. As a result, the numbers of workers are expected to decrease and the government spending needed to support pensioners and healthcare will increase if the trend is not reversed.<ref>[https://www.telegraph.co.uk/business/2016/03/04/debt-explosion-awaits-unless-policymakers-defuse-demographic-tim/ Debt 'explosion' awaits unless policymakers defuse demographic timebomb, warns IMF chief] {{webarchive|url=https://web.archive.org/web/20171203053817/http://www.telegraph.co.uk/business/2016/03/04/debt-explosion-awaits-unless-policymakers-defuse-demographic-tim/ |date=3 December 2017}}, The Telegraph. Retrieved 2016-6-03.</ref> Less than a quarter of German people expect living conditions to improve in the coming decades.<ref>The Economist, March 28, 2020, page 4.</ref> On August 25, 2020, [[Federal Statistical Office of Germany]] revealed that the German economy plunged by 9.7% in the second quarter which is the worst on record. The latest figures show how hard the German economy was hit by the government measures in response to the [[COVID-19 pandemic in Germany|COVID-19 pandemic]].<ref>{{cite web|url=https://www.dw.com/en/german-economy-plunges-by-record-97/a-54690807 |title= German economy plunges by record 9.7% |access-date=25 August 2020 |website= DW}}</ref> Energy-intensive German industry and [[List of exports of Germany|German exporters]] were hit particularly hard by the [[Global energy crisis (2021–present)|2022 global energy crisis]].<ref>{{cite news |title=A Grave Threat to Industry in Germany |url=https://www.spiegel.de/international/business/growing-energy-crisis-a-grave-threat-to-industry-in-germany-a-9152547c-a31d-483e-a70c-242c280cab23 |work=[[Der Spiegel]] |date=21 September 2022}}</ref><ref>{{cite news |title=How Bad Will the German Recession Be? |url=https://www.spiegel.de/international/business/energy-crisis-fallout-how-bad-will-the-german-recession-be-a-9e1f479e-5fef-4e62-b5ca-2f9e87b9bbca |work=Der Spiegel |date=14 September 2022}}</ref> Economy Minister [[Robert Habeck]] warned that the planned end of [[Russia in the European energy sector|Russian energy imports]] will permanently raise energy prices for German industry and consumers.<ref>{{cite news |title=Germany's Era of Cheap Energy Is Over, Economy Minister Says |url=https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-02/card/germany-s-era-of-cheap-energy-is-over-economy-minister-says-YAZ6a0GyZrTsLYwSfv0x |work=The Wall Street Journal |date=2 May 2022}}</ref> In the early 21st century, German governments supported the [[European Green Deal]] and Germany's [[Energiewende|transition to green energy]].<ref>{{cite news |title=EU ministers approve landmark climate measures, but tough talks await |url=https://www.politico.eu/article/eu-ministers-approve-landmark-climate-measures/ |work=Politico |date=29 June 2022}}</ref> Germany planned to [[Coal phase-out|phase out coal]] by 2030.<ref>{{cite news |title=Germany's Habeck Hopeful on Switching Off Coal Plants |url=https://www.bloomberg.com/news/articles/2023-11-03/germany-s-habeck-says-don-t-lose-hope-on-early-coal-exit-by-2030 |work=Bloomberg |date=3 November 2023}}</ref> The last three [[Nuclear power in Germany|nuclear power plants]] in Germany were shut down on 15 April 2023.<ref>{{cite news |title=Germany has shut down its last three nuclear power plants, and some climate scientists are aghast |url=https://www.politico.eu/article/nuclear-reactors-germany-invest-gas-power-plants-energy/ |work=NBC News |date=18 April 2023}}</ref><ref>{{cite news |title=After scrapping nuclear reactors, Germany to spend billions on new gas power plants |url=https://www.politico.eu/article/nuclear-reactors-germany-invest-gas-power-plants-energy/ |work=Politico |date=5 February 2024}}</ref> Speaking at the [[2023 United Nations Climate Change Conference|COP28 climate summit]] in [[Dubai]] in December 2023, German Chancellor [[Olaf Scholz]] called for a [[Fossil fuel phase-out|phase-out of fossil fuels]], including [[coal]], [[Petroleum|oil]] and [[natural gas]], and reiterated Germany's commitment to be [[Net zero emissions|climate neutral]] by 2045, saying, "The technologies are there: wind power, photovoltaics, electric motors, green hydrogen."<ref>{{cite news |title=COP28: Germany's Scholz calls to phase out coal, oil and gas |url=https://www.dw.com/en/cop28-germanys-scholz-calls-to-phase-out-coal-oil-and-gas/a-67614763 |work=Deutsche Welle |date=2 December 2023}}</ref> In April 2025, the German government cut its economic growth forecast for 2025 to zero, citing the impact of US President [[Tariffs in the second Trump administration|Donald Trump's trade policies]]. The United States is Germany’s largest trading partner, and Habeck said Trump’s tariffs were going to hit the German economy harder than other nations because it is so reliant on exports.<ref>{{Cite web |title=Germany sees zero growth in 2025, blames Trump tariffs – DW – 04/24/2025 |url=https://www.dw.com/en/germany-sees-zero-growth-in-2025-blames-trump-tariffs/a-72338707 |access-date=2025-04-24 |website=dw.com |language=en}}</ref> ===Immigration=== {{See also|Immigration to Germany}} In October 2023, Economy Minister [[Robert Habeck]] called for more immigration to Germany, saying the shortage of skilled workers was the country's "most pressing structural problem".<ref>{{cite news |title=Germany calls for more immigrants to fix its shrinking economy |url=https://www.ft.com/content/de913edd-71d1-4a36-b897-091125596952 |work=Financial Times |date=11 October 2023}}</ref> Net immigration to Germany was 663,000 in 2023, down from a record 1,462,000 in 2022.<ref>{{cite news |title=Germany: Net immigration sinks sharply in 2023 |url=https://www.dw.com/en/germany-net-immigration-sinks-sharply-in-2023/a-69489487 |work=Deutsche Welle |date=27 June 2024}}</ref> ===Poverty=== {{excerpt|Poverty in Germany}} ===Homelessness=== {{excerpt|Homelessness in Germany}} ===Climate change=== {{excerpt|Climate change in Germany|Economic effects}} ==See also== {{Portal|Germany|European Union|Business}} * [[Association of German Chambers of Industry and Commerce]] * [[Codetermination in Germany]] * [[Deutsche Bundesbank]] * [[Bundesverband Junger Unternehmer|German Federal Association of Young Entrepreneurs]] * [[German model]] * [[Metropolitan regions in Germany]] * [[List of German states by unemployment rate]] * [[List of German cities by GDP]] * [[Trade unions in Germany]] * [[Work–life balance]] * [[Work–life balance in Germany]] ==References== {{reflist|30em}} ==Notes== {{reflist|group=note}} ==Further reading== * {{Cite book |last = Spicka |first = Mark E. |title = Selling the Economic Miracle: Reconstruction and Politics in West Germany |publisher = Berghahn Books |year = 2007 |isbn = 978-1-84545-223-0 }} ==External links== <!-- {{No more links}} Please be cautious about adding more external links. Wikipedia is not a collection of links and should not be used for advertising. Excessive or inappropriate links will be removed. See [[Wikipedia:External links]] and [[Wikipedia:Spam]] for details. If there are already suitable links, propose additions or replacements on the article's talk page. --> * [https://www.destatis.de/EN/Homepage.html Federal Statistical Office (Destatis)] * [https://www.bundesbank.de/Navigation/EN/Home/home_node.html Deutsche Bundesbank] {{Webarchive|url=https://web.archive.org/web/20170914185446/http://www.bundesbank.de/Navigation/EN/Home/home_node.html |date=14 September 2017 }} * [https://wits.worldbank.org/CountryProfile/en/DEU World Bank Germany Trade Statistics] * [http://www.oecd.org/germany/ Germany - OECD] * [https://www.cia.gov/the-world-factbook/countries/germany/ Germany profile] at the [[CIA World Factbook]] * [http://www.worldbank.org/en/country/germany Germany profile] at [[The World Bank]] {{Germany topics}} {{Economy of Europe}} {{World Trade Organization}} {{World topic| Defense industry of | title= [[Defense industry|Defence industries of the World]] |noredlinks=yes}} {{Organisation for Economic Co-operation and Development}} [[Category:Economy of Germany| ]] [[Category:European Union member economies|Germany]] [[Category:OECD member economies|Germany]] [[Category:World Trade Organization member economies|Germany]] [[Category:Economies of Europe by country|Germany]] [[Category:Economies of Europe]]
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