German economy

Extracted Attributes

• Gold Reserves

  Over 3,000 tonnes (2nd largest globally)

• Economic System

  Social market economy

• European GDP Rank

  1st

• Trade-to-GDP Ratio

  98.6%

• Trade Surplus (2024)

  $255 billion

• Industry Contribution

  29.1% of GDP

• Mittelstand Composition

  Over 99% of all German companies

• Global GDP Rank (Nominal)

  3rd

• Service Sector Contribution

  70% of GDP

• Research and Development Spending

  3.1% of GDP

Timeline

• Germany begins a multi-decade trend of being ranked among the world's top four economies. (Source: Wikipedia)

  1960-01-01

• The German government initiates the Agenda 2010 and Hartz I-IV labor market reforms to address stagnation and high unemployment. (Source: Web Search (Wikipedia))

  2003-01-01

• The start of a five-year period of economic stagnation, with growth averaging only 0.1% through 2024. (Source: Web Search (IMF))

  2019-01-01

• Germany records a trade surplus of $255 billion and exports $1.66 trillion in goods and services. (Source: Wikipedia)

  2024-01-01

• Germany represents 23.7% of the total Euro area economy according to IMF data. (Source: Wikipedia)

  2025-01-01

• Forecasted year for the German economy to leave the phase of recession and stagnation with a projected 0.9% growth. (Source: Web Search (KPMG/Bundesbank))

  2026-01-01

• Projected real GDP rise of 1.3% as the economy continues a gradual recovery. (Source: Web Search (Bundesbank))

  2027-01-01

Economy of Germany

Germany has a highly developed social market economy. It is the largest national economy in Europe, the third-largest by nominal GDP in the world, and the sixth-largest by PPP-adjusted GDP. Due to a volatile currency exchange rate, Germany's GDP as measured in dollars fluctuates sharply, but it is among the world's top 4 since 1960. In 2025, the country accounted for 23.7% of the Euro area economy according to the International Monetary Fund (IMF). Germany is a founding member of the European Union and the eurozone. Germany is the third-largest exporter globally with $1.66 trillion worth of goods and services exported in 2024. In 2024, Germany recorded a trade surplus worth $255 billion, ranking 2nd worldwide. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Exports accounted for 50.3% of national output. The top 10 exports of Germany are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics. Germany is the largest manufacturing economy in Europe, contributing around one third of all manufacturing in Europe. Among OECD members, Germany has a highly efficient and strong social security system, which comprises roughly 25% of GDP. Germany is rich in timber, lignite, potash, and salt. Some minor sources of natural gas are being exploited in the state of Lower Saxony. Until German reunification, the German Democratic Republic mined for uranium in the Ore Mountains (see also: SAG/SDAG Wismut). Energy in Germany is sourced predominantly by fossil fuels (30%), with wind power in second place, then gas, solar, biomass (wood and biofuels), and hydro. Germany is the first major industrialised nation to commit to the renewable energy transition called Energiewende. Renewables produced 46% of electricity consumed in Germany (as of 2019). Germany has been called "the world's first major renewable energy economy". Germany has the world's second-largest gold reserve, with over 3,000 tonnes of gold. As of 2023, Germany spends around 3.1% of GDP, third among major economies, on research and development. It is also the world's second-largest high-technology exporter and ranks in the top 10 of countries by stock market capitalization. During the 2020s, Germany faced significant economic troubles. More than 99 percent of all German companies belong to the German "Mittelstand", mostly family-owned small and medium-sized enterprises. These companies represent 48% of the global market leaders in their segments, labelled hidden champions. Of the world's 500 largest publicly listed companies measured by revenue, the Fortune Global 500, 29 are headquartered in Germany, as are 26 of Europe's 100 largest. Germany is home to many financial centres and economically important cities, such as Berlin, Hamburg, Munich, Cologne, Frankfurt, and Stuttgart. Four German banks are among the biggest in the world. Germany is the world's top location for trade fairs; around two thirds of the world's leading trade fairs take place in Germany. Some of the largest international trade fairs and congresses are held in several German cities such as Hanover, Frankfurt, Cologne, Leipzig, and Düsseldorf.

Web Search Results

• Economy of Germany - Wikipedia

  As of December 2023, Germany is the third largest economy in nominal "List of countries by GDP (nominal)") terms in the world after the United States and China, and the largest economy in Europe. It is the third largest export nation in the world. In April 2024, a report by the German Economic Institute revealed that despite attempts to expand into other markets, the German economy remains heavily reliant on China for various products and raw materials. [...] The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%), and in 2005 (+1.4%). Unemployment was also chronically high. Due to these problems, together with Germany's aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging programme of belt-tightening reforms, Agenda 2010, including the labour market reforms known as Hartz I - IV. [...] Germany has a social market economy characterised by a highly qualified labour force, a developed infrastructure, a large capital stock, a low level of corruption, and a high level of innovation. It has the largest national economy in Europe, the third largest by nominal GDP "List of countries by GDP (nominal)") in the world, and ranked fifth by GDP (PPP) "List of countries by GDP (PPP)") in 2023.

• Bundesbank's Forecast for Germany: Economy will gradually recover

  In the current Forecast for Germany, the Bundesbank’s experts expect calendar-adjusted real gross domestic product (GDP) to rise by 0.6 % next year and by 1.3 % in 2027. With more working days in the next two years, unadjusted GDP rates are somewhat higher, at 0.9 % and 1.4 % respectively. Economic growth will continue in 2028 but, with a (calendar-adjusted) growth rate of 1.1 %, it will lose some momentum. Capacity utilisation in the German economy will then be high again, said Bundesbank [...] After multiple years of contraction, the Bundesbank expects the economy to gradually recover. The German economy will make headway again in 2026: while progress will be subdued initially, it will then slowly pick up, said Bundesbank President Joachim Nagel, presenting the Bundesbank’s new Forecast for Germany. Starting in the second quarter of 2026, economic growth will strengthen markedly, driven mainly by government spending and a resurgence in exports, he explained. [...] While expansionary fiscal policy will boost economic activity, it will have only a limited impact on the potential output of the German economy. The Bundesbank’s experts estimate that potential output will grow by just 0.4 % per year over the forecast horizon. Broader structural reforms would be needed to sustainably strengthen this.

• Economic Key Facts Germany - KPMG International

  With a gross domestic product of €4,305 billion in 2024, Germany is the world's third-largest economy after the United States and China and just ahead of Japan, making it the largest economy in Europe. However, India is expected to overtake Japan and Germany in the future. Exports of motor vehicles and motor vehicle parts, as well as chemical products, in particular, have made Germany the world's third-largest export nation to date. At 70%, the service sector contributes the largest share to [...] Next year, the German economy is expected to grow noticeably again for the first time since 2022. However, the potential would be significantly greater if the federal government were to use the billions in new debt in a more targeted manner. These are the key findings of the annual report submitted to the government by the German Council of Economic Experts. The five council members, commonly known as the "economic wise men," warn against squandering opportunities for more growth. [...] According to their forecast, real gross domestic product will rise by +0.9% in 2026, after growing by only +0.2% this year. This would mean that the German economy would leave the phase of recession and stagnation behind. Economic output declined in 2023 and 2024.

• The economy in Germany - deutschland.de

  Germany is a major exporter – but exports are not everything. Let us explain why Germany is a developed country, what type of economy Germany has and which factors make Germany’s economy so strong.One important role is played by German industry. Industry accounts for 26.6 percent of gross value added in Germany – this is the highest figure of all the G7 countries. The strongest sectors are vehicle manufacturing, electronics, mechanical engineering and the chemical industry. Alongside China and [...] Industry in transition Energy transition On the way to becoming a climate-neutral industrial nation German industry is undergoing fundamental change. The aim is to create a sustainable economy, for example by means of the energy transition and also the Supply Chain Act. The economy Energy transition Germany is pinning its hopes on green hydrogen A National Hydrogen Strategy is intended to step up the use of green hydrogen in the German economy. Exemplary success [...] Judging by how important foreign trade is to the country’s gross domestic product (GDP), Germany has the most open economy of the G7 states. Its trade-to-GDP ratio is 98.6 percent – this refers to the sum total of imports and exports in relation to GDP. Germany relies on and promotes free exchange between countries and is committed to open and equal relations with all countries. Alongside China and the USA, Germany is one of the world’s three largest export nations.

• Making Germany Grow Again - International Monetary Fund

  For the past five years, Germany’s economy has been stagnant, growing by just 0.1 percent since 2019. Over the same period, the US economy has grown by 12 percent and the euro area as a whole by 4 percent. The forecast does not look any brighter. The German Council of Economic Experts, an independent panel that advises the federal government, expects growth to remain sluggish for the next two years, with potential output increasing by only 0.4 percent per year. [...] While the German economy has been one of Europe’s strongest for decades, its performance in recent years has fallen short of expectations. Why is this once economic powerhouse now lagging? In this podcast, economist Ulrike Malmendier says an aging population and a lack of workers are contributing to the country’s economic woes. Image 8