Country Report of Germany

Country Report of Germany

Location

Germany is located in Central Europe. The country shares borders with the Baltic Sea and the North Sea. It is located between the South of Denmark, Poland, and the Netherlands.

Economy Overview

The economy of Germany is considered to be the fifth largest economy at a global level. Businesses operating in Germany bet benefit from the highly skilled labor force. Germany is facing significant demographic challenges associated with long-term growth (Barsauskas, Kurschus & Pilinkiene, 2011). The low fertility rate and the slow rate of immigration are increasing the pressures on the social welfare system of Germany. According to the Central Bank of Germany, the GDP is expected to grow 0.6% in 2012. This is the reflection of euro-zone financial crisis and burden.

GDP (PPP)

$3.139 trillion (2011 est.) $3.046 trillion (2010 est.) $2.941 trillion (2009 est.) 

Real Growth Rate

 3.1% (2011 est.) 3.6% (2010 est.) -5.1% (2009 est.)

Corruption Rate

The average rate of Germany's corruption, in 2012, is 7.9%. In the year 2011, the rate of corruption was 8.0%. The rank of Germany in the Worldwide Corruption Perceptions ranking of countries is 13. It depicts that Germany has a relatively high rate of corruption.

Currency Used

From 2002 to present, Germany has been using Euro

Exchange Rates

Euros (EUR) per US dollar0.7107 (2011 est.) 0.7532 (2010 est.) 0.7198 (2009 est.) 0.6827 (2008 est.) 0.7345 (2007 est.)

Inflation Rate

Consumer prices: 2.3% (2011 est.) 1.1% (2010 est.)

Imports and Exports

Imports: $1.198 trillion (2011 est.)

$1.099 trillion (2010 est.)

Exports $1.408 trillion (2011 est.) $1.303 trillion (2010 est.)

(International Monetary Fund, 2011)

Economic Outlook and Business Opportunities

Germany is one of the largest economies of Europe not only on the basis of its size but also its ability. The availability of plentiful coal, mineral deposits, and mineral deposits has contributed towards the efficiency of chemical as well as manufacturing sectors. The strategic location of Germany, at the heart of Europe, has made it attractive for global businesses. The successful widening of the European Union along with the introduction of the Euro greatly facilitated the economic development of Germany. The presence of natural resources, strategic location of the country, and the introduction of Euro, has allowed the country to strengthen its traditional export with increased trade links. From 2001 to 2004, Germany experienced economic stagnation and re-bounced as a result of floating global demand. Between 2001 and 2004, the economy of Germany hardly grew. The international issues including pressures of globalization, global terrorism, war, and rising oil prices compounded structural problems. Nevertheless, the firms operating at Germany were adept at enhancing their levels of productivity and at the same time lowering costs. Consequently, the competitiveness of firms operating in Germany increased as compared to their counterparts operating in other Eurozone. It resulted in a quick economic recovery (Hoppe, 1997).

The economy of Germany is the fifth largest economy of the world. After the expansion of the European Union, the German economy accounted for more than one-fifth of EU GDP. Germany is the major partner in trade with the United States. The country is the sixth largest market for the United States ...