Country Report
GERMANY

By: Arun Sareen

Content
Content 2 1. Introduction: Germany at a glance 3
Graph 1.1: World’s largest economies by GDP 3
Graph 1.2: Key economic indicators in Germany since 2000 4 2. Germany’s economy in the lead up to the crisis 4
Table 2.1: Economic data since unification of Germany 5 3. Impact of the crisis in Germany 6
Graph 3.1: Exports in German compared to largest global exporters since 2000 7
Graph 3.2: Germany vs US employment data 8 4. Recovery of the German economy 8 5. Conclusion 9 6. References 10

Introduction: Germany at a glance
Germany is a major economic and political force within Europe, and a founding member of the European Union (EU) since 1993. With a population of 82.1m and a Gross Domestic Product (GDP) of €2.5b, Germany is the most populous member state of the EU and has the largest national economy in Europe (EU website, 2014). As indicated in Graph 1.1 below, Germany also has the fourth largest economy by real GDP globally (behind the US, China and Japan) and is the third largest exporter in the world.

Graph 1.1: World’s largest economies by GDP

Source: International Monetary Fund, World Economic Outlook Database, April 2014

Exports make up approximately one third of Germany’s GDP and are driven by a strong industrial base. Germany is a major producer and exporter of automobiles, transport equipment, mining products, electronic and communications equipment, chemicals and pharmaceuticals (IMF, 2014). As a result of this concentration on exports, competitiveness in the global economy is an important factor impacting living standards in Germany. In addition, while an open economy, social protection and the state have an important role to play in the performance of the economy (OECD, 2013).

This report outlines the economic situation in Germany since the early 2000s, in