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Why is the German economy so powerful?

· Company Formation,Company Services,Trends

Export is not everything - seven factors of German economic strength.

1. The important role of industry

The most powerful sectors are the automotive, electrical, engineering and chemical industries.

2. High export quota

Germany, together with China and the United States, is one of the three major exporters. In 2017, the value of German exports was 127.89 billion euros. Export quotas are almost 40% and industrial output is over 50%.

3. Open economy

From the importance of foreign trade to gross domestic product (GDP), Germany is the most open economy. The foreign trade quota is currently 84.4% - this is the total import and export volume related to GDP. In contrast, the US quota is 26.7%.

4. High-performance medium-sized enterprises

 

Medium-sized companies are at the heart of the German economy. In other words, companies with an annual turnover of less than 50 million euros and fewer than 500 employees. This economic sector has 99.6% of German companies. More than 1,000 of these companies are so-called stealth champions, often less well-known international market leaders.

5. Best exhibition location

 

Germany is the world's premier destination for international trade fairs. Two-thirds of the world's major industrial activities are held in Germany. Each year, 10 million visitors participate in about 150 international trade fairs and exhibitions.

 

6. A strong economic center

 

Germany's most important economic centers are Munich (high-tech), Stuttgart (vehicle construction), Rhein-Neckar (Chemistry, IT), Frankfurt (finance) and Hamburg (port, aircraft manufacturing, media) and other metropolitan areas. Berlin/Brandenburg is the most powerful start-up area.

 

7. Good employment rate

 

Germany is approaching full employment. In June 2018, the number of unemployed reached 2.2 million. This is the lowest level since the reunification. The largest employers in Germany are Volkswagen (642,000 employees worldwide), Deutsche Post (519,000), Robert Bosch (402,000), Schwarz-Gruppe (retail, 400,000) and Siemens (372,000).

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