Germany Economy - 2006

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):
$2.454 trillion (2005 est.)

GDP (official exchange rate):
$2.764 trillion (2005 est.)

GDP - real growth rate:
0.9% (2005 est.)

GDP - per capita (PPP):
$29,800 (2005 est.)

GDP - composition by sector:
agriculture: 1.1%
industry: 28.6%
services: 70.3% (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:
11.6% (2005 est.)

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:
28.3 (2000)

Inflation rate (consumer prices):
2% (2005 est.)

Investment (gross fixed):
17.1% of GDP (2005 est.)

Budget:
revenues: $1.249 trillion
expenditures: $1.362 trillion; including capital expenditures of $NA (2005 est.)

Public debt:
68.1% of GDP (2005 est.)

Agriculture - products:
potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultry

Industries:
among the world's largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles

Industrial production growth rate:
1.7% (2005 est.)

Electricity - production:
558.1 billion kWh (2003)

Electricity - consumption:
510.4 billion kWh (2003)

Electricity - exports:
54.1 billion kWh (2003)

Electricity - imports:
45.4 billion kWh (2003)

Oil - production:
158,700 bbl/day (2003)

Oil - consumption:
2.677 million bbl/day (2003)

Oil - exports:
12,990 bbl/day (2003)

Oil - imports:
2.135 million bbl/day (2003)

Oil - proved reserves:
395.8 million bbl (1 January 2004)

Natural gas - production:
22.22 billion cu m (2003 est.)

Natural gas - consumption:
93.88 billion cu m (2003 est.)

Natural gas - exports:
7.731 billion cu m (2003)

Natural gas - imports:
85.02 billion cu m (2003)

Natural gas - proved reserves:
305.8 billion cu m (1 January 2004)

Current account balance:
$119.8 billion (2005 est.)

Exports:
$1.016 trillion f.o.b. (2005 est.)

Exports - commodities:
machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles

Exports - partners:
France 10.3%, US 8.8%, UK 8.3%, Italy 7.2%, Netherlands 6.2%, Belgium 5.6%, Austria 5.4%, Spain 5% (2004)

Imports:
$801 billion f.o.b. (2005 est.)

Imports - commodities:
machinery, vehicles, chemicals, foodstuffs, textiles, metals

Imports - partners:
France 9%, Netherlands 8.3%, US 7%, Italy 6.1%, UK 5.9%, China 5.6%, Belgium 4.9%, Austria 4.2% (2004)

Reserves of foreign exchange and gold:
$97.17 billion (2004 est.)

Debt - external:
$3.626 trillion (30 June 2005)

Economic aid - donor:
ODA, $5.6 billion (1998)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates:
euros per US dollar - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)