Germany » Introduction

Basic Economic Facts

GDP composition by Sector

Behind the United States and Japan Germany have the major economy in Europe and the third largest economy in the world. Germany is ranked fifth in the world in terms of purchasing power parity. In 2003- 2006 Germany is the world's foremost exporter of goods. Germany is the world's top exporter with $912 billion exported in 2005.

Germany ranks second behind the United States in the service sector. Germany is first in the world and it is also the main exporter of wind turbines. The advancement and merging of the eastern German economy continues to be an expansive long-term process, with annual transfers from west to east amounting to roughly $80 billion.

The former government of Chancellor Gerhard Schroeder amended a comprehensive set of labour market and welfare-related institutions. Germany's aging population, combined with high persistent unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006 decreased Germany's budget deficit to within the EU's 3% debt limit.