Economic outlook of Germany

The Economic Outlook of Germany

As previously stated, Germany is listed as the world's fourth and fifth largest economy globally by nominal GDP and GDP PPP (Purchasing Power Parity) and a leading exporter of machinery, vehicles, chemicals, and household equipment. The economic Growth Rate in Germany averaged 0.53 percent from 1970 until 2022. The top ten exports are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics. Hence, the economy of Germany is the largest manufacturing economy in Europe and it is less likely to be affected by any financial drop. The total GDP comprises of the service sector which contributes around 70%, industry 29.1%, and agriculture 0.9%. The unemployment rate of Germany should remain stable in the upcoming years (3.3% in 2020 and 3.4% in 2021, according to the IMF). It is also interesting to note that Germany is the first major industrialized nation to commit to the renewable energy transition called Energiewende. Germany is the prime producer of wind turbines in the world. Renewable Energy produced 41.1% of the electricity consumed in Germany (as of 2021). Fifty-three of the world's largest publicly listed companies measured by revenue are headquartered in Germany, with the top 10 being Allianz, Daimler, Volkswagen, Siemens, BMW, Deutsche Telekom, Bayer, BASF, Munich Re, and SAP.