Economy Germany
Economy - overview:
Germany's affluent and technologically powerful economy - the fifth
largest in the world - has become one of the slowest growing
economies in the euro zone. A quick turnaround is not in the offing
in the foreseeable future. Growth in 2001-03 fell short of 1%,
rising to 1.7% in 2004 before falling back to 0.9% in 2005. The
modernization and integration of the eastern German economy
continues to be a costly long-term process, with annual transfers
from west to east amounting to roughly $70 billion. Germany's aging
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. 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 further addressed. In
the short run, however, the fall in government revenues and the rise
in expenditures have raised the deficit above the EU's 3% debt limit.
GDP (purchasing power parity):
$2.48 trillion (2005 est.)
GDP (official exchange rate):
$2.73 trillion (2005 est.)
GDP - real growth rate:
0.9% (2005 est.)
GDP - per capita (PPP):
$30,100 (2005 est.)
GDP - composition by sector: agriculture: 0.9% industry: 29.6% services: 69.5% (2005 est.)
Labor force: 43.32 million (2005 est.)
Labor force - by occupation: agriculture: 2.8% industry: 33.4% services: 63.8% (1999)
Unemployment rate:
11.7% (2005 est.)