As a founding member of the Eurozone, Germany has a sturdy economy.
It is the largest national economy amongst all the European nations.
It stands 4th in nominal GDP rankings in the world with $3.5 trillion and
grabs the 5th position in the highest GDP nations with $4.0 trillion.
It is a social market type of economy.
Germany, as the largest manufacturing nation in Europe, specializes in the export
of automotive, electronic products, machinery, pharmaceuticals, and food products.
Service sector dominates the economy with a massive 70% weight.
The manufacturing sector comes next with 29.1% inputs and the
agricultural sector remains the last with a mere 0.9% contribution.
An estimation of its foreign reserves is at $0.4 trillion.
Its export partners include some of the strongest economies
in the world such as the US, the UK, China, France, and more.
When it comes to natural and mineral resources, the country abounds
in natural gas, timber, uranium, salt, nickel, potash, copper, etc.
It is the first major nation to engage in the
utilization of renewable energy sources.
A gigantic 99% of industries of the country are small and middle-scale
undertakings, most of which are owned and run by families.
Strongholds of the German Economy
Germany also hosts about two-thirds of all the important trade fairs of the world.
37 of the Fortune 500 have their headquarters situated in Germany.
Some of the biggest automobile names such as Mercedes, Audi,
Volkswagen, and BMW are also of a German origin and location.
The capital city, Berlin’s economy has developed as a magnet for start-ups.
It has transformed itself into an ecosystem for emerging enterprises
making a great local for leading European venture capital industries.
Germany ranks at number 3 amongst the largest exporters in the world.
It recorded a $1.27 trillion worth of exports of goods and service in 2016.
Period of Industrialization
The unification of Germany marked the onset of industrialization in the country.
This also resulted in the unification of monetary
system, which further developed the German economy.
It became the first nation to introduce programmes like universal
healthcare, insurance, pension, and educational plans.
This resulted in a 99% literacy rate which created
a highly capable human resource for the economy.
By the 20th century, Germany’s steel production
outweighed that of Britain and the US.
Population growth coupled with urbanization
took the German economic stronghold further.
This powerful economy came to its downfall with the advent of the Nazis.
The Nazi party, however, developed its contacts with
several big businesses to strengthen the German economy.
Period of 2000 – Present
With its stagnant figures and high rates of unemployment
in the early 2000s, the economy suffered many setbacks.
Its aging population added to the pain.
An improvement in the world economy by the later years of the
2000s, Germany reached its position as the leading exporter.
The year 2008 was still terrible for the economy with its technical
recession amidst a European cycle of the recession of the time.
Its industrial output plummeted and exports dropped as well.
It improved in the two quarters of 2009 and continued
progressing upwards to reach its present state.