Ranking third in terms of total economic output, Germany is one of the worlds leading nations. In terms of exports, Germany takes first place worldwide. The country continues to be an attractive market for foreign investors, offering a superbly developed infrastructure and a highly motivated, well-qualified work force. Top-notch research and development projects are additional hallmarks of the country.
The social partnership between trade unions and employers ensures a high degree of social harmony. Reforms to the social security system and structural reforms to the labor market are intended to reduce ancillary labor costs and rejuvenating economic growth, which, in comparison with other EU countries, is on a low level.
Compared with other industrial nation, the German economy has an almost unprecedented international focus. Companies generate almost a third of their profits through exports, and almost one in four jobs are dependent on foreign trade. The high level of international competitiveness is most evident where companies vie with others in the international arena. Despite the slump in world trade, the share of exports expanded at a higher than average rate. In addition, the continuous rise in direct investments by international companies in Germany and by German companies abroad underscores the strong position of the German economy in comparison with its international competitors. It is buttressed at the national level by a favorable inflation rate and unit labor costs as well as by a stable society.
German Economic System
Infrastructure
Liberalization
Foreign trade
Foreign economic policy
Taxes |
