HISTORY OF GERMANY
• Germany before 1800 was heavily rural, with some urban trade
• In 19th century it began the stage of rapid economic growth and
modernization, led by heavy industries.
• By 1900 it became the largest economy of Europe.
• West Germany became an “economic miracle” in the 1950s and
1960s with the help of Marshall’s plan.
• In Germany the industrial revolution began 100 years ahead of
INTRODUCTION TO GERMANY’S
• Germany is the largest economy in Europe.
• It is the forth largest economy in the world by nominal GDP and the fifth largest by GDP(PPP).
• The country is a founding member of the European union and the Eurozone.
• The socio-economic policy of Germany is based on the concept social market economy.
• German economy is the third most complex economy according to economic complexity index.
1. As of January 2022 the unemployment rate was 5.3%.
2. As of October 2022 the inflation rate was 10.4%.
3. Freedom from corruption is 89% and increasing.
4. Nominal GDP is $4.03 Trillion.
5. GDP(PPP) is $5.32 Trillion.
6. GDP growth rate is 1.2%.
7. Average gross salary is €4168 monthly in 2021.
• Of the world’s 500 largest stock-market-listed companies measured by
revenue in 2022, the Fortune Global 500, 17 are headquartered in
Germany. Well-known global brands are SAP , Mercedes-benz ,
• Germany excels in production of automobiles, machinery, chemicals
and electrical equipments. With the production of 3.3 million
automobiles in 2021, Germany was the sixth largest producer of
• In 2017 services constituted 68.6% of gross domestic product (GDP).
• The subcomponents of services are financial, renting, and business
activities (30.5%); trade, hotels and restaurants, and transport (16.4%);
and other service activities (21.7%).
• Germans were the first to bring insurance policies.
EXPORT AND IMPORT OF GERMANY
• Germany is the third largest export and import economy in the world
• Germany is the largest exporter of automobiles in the world.
• It is the largest capital exporter in the world.
• In 2021 Germany exported €1.37T and imported €1.20T , resulting
in positive trade balance of €173.3B.
• The top exports of Germany are Machinery including
computers($268.6B), Vehicle ($246B), Electrical
machinery($176.4B), Pharmaceuticals ($118B) and Medical apparatus
• Germany has one of the highest levels of upper secondary attainment.
• 86% of the country’s 25-64 year-olds have obtained at least an upper
• Germany is one of the top most preferred higher education
destination in the world.
• Germany boasts a highly developed infrastructure with dynamic growth.
• The railroad network is approx. 41,000 kilometres long, and there are 230,000 kilometres of roads.
• The country has one of the world’s most modern telephone and communications networks.
• Germany is the fifth largest consumer of energy in the world. It is the highest consumer of electricity in
Europe, 512.9 terawatts-hour.
• With its central position in Europe, Germany is an important transportation hub.
• 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
• Unemployment was also chronically high. Due to these problems, together with
Germany’s aging population, the welfare system came under considerable
• 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 I – IV.
INDIA VS GERMANY
• According to Economic complexity index the ECI value of Germany in 2018 is 2.09 making it the
fourth most complex economy.
• The ECI rank of India is 42 with the value of 0.54
AGRICULTURE SERVICE INDUSTRY
INDIA 16.38% 54.27% 29.34%
GERMANY 0.7% 68.6% 30.7%
• High innovation rates/ skilled labour
• Strong export
• Price stability, low inflation
• High investments in research and development
• Low debts, high savings
• Transparent and anti-corrupt system.
• Few natural resources.
• High dependence on external market.
• Dependence on energy and oil supply.
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