Germany Economy - 2005

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. 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 - $2.362 trillion (2004 est.)

GDP - real growth rate:
1.7% (2004 est.)

GDP - per capita:
purchasing power parity - $28,700 (2004 est.)

GDP - composition by sector:
agriculture: 1%
industry: 31%
services: 68% (2002 est.)

Labor force:
42.63 million (2004 est.)

Labor force - by occupation:
agriculture 2.8%, industry 33.4%, services 63.8% (1999)

Unemployment rate:
10.6% (2004 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:
30 (1994)

Inflation rate (consumer prices):
1.6% (2004 est.)

Investment (gross fixed):
17.6% of GDP (2004)

Budget:
revenues: $1.2 trillion
expenditures: $1.3 trillion, including capital expenditures of NA (2004 est.)

Public debt:
65.8% of GDP (2004 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:
2.2% (2004 est.)

Electricity - production:
560 billion kWh (2003)

Electricity - consumption:
519.5 billion kWh (2003)

Electricity - exports:
53.8 billion kWh (2003)

Electricity - imports:
45.8 billion kWh (2003)

Oil - production:
74,100 bbl/day (2003)

Oil - consumption:
2.891 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:
21 billion cu m (2003)

Natural gas - consumption:
99.55 billion cu m (2003)

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

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

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

Current account balance:
$73.59 billion (2004 est.)

Exports:
$893.3 billion f.o.b. (2004 est.)

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

Exports - partners:
France 10.2%, US 8.8%, UK 8.2%, Italy 7.2%, Netherlands 6.3%, Belgium 5.7%, Austria 5.4%, Spain 5% (2004)

Imports:
$716.7 billion f.o.b. (2004 est.)

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

Imports - partners:
France 9.2%, Netherlands 8.7%, US 6.5%, Italy 6.1%, UK 5.8%, Belgium 5.8%, China 5.3%, Austria 4.3% (2004)

Reserves of foreign exchange and gold:
$96.84 billion (2003)

Debt - external:
NA

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 - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)