A short presentation about the major key facts of the German economy in English.

1. German Economy
Lecture „Economía Española y Mundial“
Barcelona, 18th of October, 2010

2. What is the first thing coming into your mind about Germany?
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3. Content Page
A. Introduction: Key Facts and Figures 3
B. Significant Aspects of the German Economy 5
B.1 Strenghts in Industry and Service Sector 6
B.2 Germany as the Exportnation 7
B.3 Governmental Activities during Financial Crisis 8
B.4 Social Systems, Education and Infrastructure 9
C. Summary and Future Prospects 10
C.1 Position in Global Economy (SWOT) 11
C.2 Economic Outlook 12
D. Sources 13
Contact/ Team 14
18. Oktober 2010 © German Economy – Battistini, Klein, Kürten, Lüdemann, Matolcsy, Ragno, Weidner 3

4. A. Introduction
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5. Domestic demand supports German Economy: Germany expects its highest
annual growth since 1991
Key Fact Overview
Economic Growth (GDP)
Economic Growth (GDP) Export and Import 2008 – 2010 [Bil. EUR]
Export and Import 2008 – 2010 [Bil. EUR] Added Value GDP by Sectors 2009 [%]
Added Value GDP by Sectors 2009 [%]
• GDP is expected to grow by nearly 3,5 Import 2010; Export
9E+0 Agr. &
1.000. Constr.
percent in 2010 5 000,0 Forest
2008;
2009; 5%
• Domestic demand can be seen as „the 8E+0
7E+0
1E+0 1%
8E+0
5
5
6
5 Industry
engine“ 22%
• Inflation around +1%
• Growth expected to slow down in 2011
(+2%) 08 09 FC 10 08 09 FC 10
2,5% 1,3% Unemployment and Fiscal Deficit Service
Unemployment and Fiscal Deficit
3% 72%
• Unemployment decreased to now 6,8%
(August 2010) • Strong German „Mittelstand“
• Fiscal deficit ratio is expected to decrease from • Main goods: Automotive, Machinery,
-5% 3,8% to 2,7% in 2010 Chemical Products
FC
2007 2008 2009 2010
Source: destatis - Statistisches Bundesamt; GfK – Gesellschaft für Konsumforschung
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6. B. Significant aspects of the German Economy
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7. B.1 Strenghts in Industry and Service Sector
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8. German economy develops into a service based country – offering high level
services
Strenghts in Industry and Service Sector
Big Industry
Big Industry Medium Size and Small Industry
Medium Size and Small Industry Service Sector
Service Sector
• Main companies and sectors • Efficiency and quality • Changing into a „Service Society“
• Traditional market contraction • Competitive Supply and different • Composition
work system
• Importance of immaterial factor and Research and
Development
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9. B.2 Germany as the Exportnation
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10. After China, Germany is the 2nd biggest exportnation in the World – that meant
803,2 Billion Euros income from the export in 2009
German Exports
Exported goods and services 2009
Exported goods and services 2009 Total exports 2009-2010 [Mio. EUR]
Total exports 2009-2010 [Mio. EUR] Top 10 Export Partners
Top 10 Export Partners
[% in ref. to the total]
[% in ref. to the total]
Vehicles; France, 10,3 %
17,4%
("#""" United States, 8,8 %
'$#"""
Other; 48,7% Machinery;
12,5% '"#""" United Kingdom, 8,3 %
&$#"""
&"#""" Italy, 7,2 %
%$#"""
%"#""" Netherlands, 6,2 %
Chemicals;
11,4% $$#"""
$"#""" Belgium, 5,6 %
Metals; 5,6% !$#"""
Electrical
Austria, 5,4 %
machinery; !"#"""
4,4%
Spain, 5 %
• Main companies and sectors
Switzerland, 3,8 %
• Traditional market contraction
China, 3, 2%
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11. B.3 Governmental activities during Financial Crisis
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12. Merkel, Steinbrück and other politicians initiated massive governmental
programs to save banks, the Euro and German Economy
Timeline Governmental Programs
Source: destatis - Statistisches Bundesamt; GfK – Gesellschaft für Konsumforschung
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13. Positive Development and Forecasts of main indicators acknowledge succesful
management in companies and politics during economic crisis
Development of selected Indicators
Unemployment Rate [%]
Unemployment Rate [%] Gross Domestic Product [Bill. EUR]
Gross Domestic Product [Bill. EUR] Foreign Trade Balance [Bill. EUR]
Foreign Trade Balance [Bill. EUR]
Positive Development
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14. B.4 Social Systems, Education and Infrastructure
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15. Governmental systems and activities provide a basis for stability and health
and a flexible, future-oriented economy
Social System, Education and Infrastructure
Social System
Social System Education
Education Infrastructure
Infrastructure
• Health Insurance • Decisional and legislative structure • Transport
• Long-term care insurance • Academical Career • Health
• Pension Insurance • University, Research and Development
• Work Accident Insurance
• Unemployment Insurance
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16. C. Summary and Future Prospects
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17. C.1 Position in Global Economy
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18. Although German economy is strong and in a leading position, Germany has to
deal with some very serious weaknesses and threats…
SWOT Analysis
Strenghts
Strenghts Weaknesses
Weaknesses
• High innovation rate/ high skilled labour • Few natural ressources
• Strong export • Demographic change (many old people, less children)
• Price stability, low inflation • High public deficit
• High investments in Research and Development
Opportunities
Opportunities Threats
Threats
• Euro-zone • Outsourcing
• Human capital mobility • High dependence on external markets
• Member of European Union and World Trade Organization • Dependence on energy and oil supply
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19. C.2 Economic Outlook
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20. Due to high domestic and external demand the german engine will keep
working in 2011
Economic Outlook
Macroeconomic Recovery 2010/ 2011
Brisk foreign Increasing Increasing
Rising export Rising Profits
demand Investments Industrial Output
Positive
employment trend
Higher Rising consumer Positive
disposable income spending economic growth
Economic
stimulus packages
Source: German Information Centre Pretoria – „Economic situation in Germany in August 2010“
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