Germany Economy - 2004

Economy - overview:
Germany's affluent and technologically powerful economy- the fifth largest national economy in the world - has become one of the slowest growing economies in the entire euro zone, and a quick turnaround is not in the offing in the foreseeable future. Growth in 2001 - 2003 fell short of 1%. 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 ageing 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. The government is also starting long-needed structural reforms designed to revitalize the country's economy. 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 - $2.271 trillion (2003 est.)

GDP - real growth rate:
-0.1% (2003 est.)

GDP - per capita:
purchasing power parity - $27,600 (2003 est.)

GDP - composition by sector:
agriculture: 1%
industry: 31%
services: 68% (2002 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):
0.9% (2003 est.)

Labor force:
41.9 million (2001)

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

Unemployment rate:
10.7% (2003 est.)

Budget:
revenues: $802 billion
expenditures: $825 billion, including capital expenditures of $NA (2001 est.)

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:
0.1% (2003 est.)

Electricity - production:
544.8 billion kWh (2001)

Electricity - production by source:
fossil fuel: 61.8%
hydro: 4.2%
other: 4.1% (2001)
nuclear: 29.9%

Electricity - consumption:
506.8 billion kWh (2001)

Electricity - exports:
43.9 billion kWh (2001)

Electricity - imports:
44 billion kWh (2001)

Oil - production:
85,860 bbl/day (2001 est.)

Oil - consumption:
2.813 million bbl/day (2001 est.)

Oil - exports:
404,300 bbl/day (2001)

Oil - imports:
3.081 million bbl/day (2001)

Oil - proved reserves:
327.3 million bbl (1 January 2002)

Natural gas - production:
22.16 billion cu m (2001 est.)

Natural gas - consumption:
94.34 billion cu m (2001 est.)

Natural gas - exports:
6.674 billion cu m (2001 est.)

Natural gas - imports:
78.73 billion cu m (2001 est.)

Natural gas - proved reserves:
298.3 billion cu m (1 January 2002)

Agriculture - products:
potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultry

Exports:
$696.9 billion f.o.b. (2003 est.)

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

Exports - partners:
France 10.7%, US 10.3%, UK 8.4%, Italy 7.3%, Netherlands 6.1%, Austria 5.1%, Belgium 4.8%, Spain 4.6%, Switzerland 4.2% (2002)

Imports:
$585 billion f.o.b. (2003 est.)

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

Imports - partners:
France 9.4%, Netherlands 8.2%, US 7.7%, Italy 6.4%, UK 6.4%, Belgium 5.1%, Austria 4.1%, China 4.1% (2002)

Debt - external:
$NA (2000 est.)

Economic aid - donor:
ODA, $5.6 billion (1998)

Currency:
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

Currency code:
EUR

Exchange rates:
euros per US dollar - 0.89 (2003), 1.06 (2002), 1.12 (2001), 1.09 (2000), 0.94 (1999)