Economy Germany
Economy - overview: Germany's affluent and technologically powerful economy turned in a relatively weak performance throughout much of the 1990s. The modernization and integration of the eastern German economy continues to be a costly long-term problem, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Business and income tax cuts introduced in 2001 did not spare Germany from the impact of the downturn in international trade, and domestic demand faltered as unemployment began to rise. The government expects growth to gain pace in the second half of 2002, but to fall short of 1% for the year again. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are addressed.
GDP: purchasing power parity - $2.174 trillion (2001 est.)
GDP - real growth rate: 0.6% (2001 est.)
GDP - per capita: purchasing power parity - $26,200 (2001 est.)
GDP - composition by sector: agriculture: 1% industry: 28% services: 71% (2000)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: 3.6% highest 10%: 25.1% (1997)
Distribution of family income - Gini index: 30 (1994)
Inflation rate (consumer prices): 2.4% (2001)