Economy - overview Germany's affluent and technologically powerful economy turned in a relatively weak performance throughout much of the 1990s. The modernization and integration of the eastern German economy continues to be a costly long-term problem, 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. Business and income tax cuts introduced in 2001 did not spare Germany from the impact of the downturn in international trade, and domestic demand faltered as unemployment began to rise. The government expects growth to gain pace in the second half of 2002, but to fall short of 1% for the year again. 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 addressed.

GDP purchasing power parity - $2.174 trillion (2001 est.)

GDP - real growth rate 0.6% (2001 est.)

GDP - per capita purchasing power parity - $26,200 (2001 est.)

GDP - composition by sector
agriculture: 1%
industry: 28%
services: 71% (2000)

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) 2.4% (2001)

Labor force 41.9 million (2001)

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

Unemployment rate 9.4% (2001)

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 0.2% (2001 est.)

Electricity - production 537.328 billion kWh (2000)

Electricity - production by source
fossil fuel: 63.08%
hydro: 3.65%
other: 3.27% (2000)
nuclear: 30%

Electricity - consumption 501.716 billion kWh (2000)

Electricity - exports 42.5 billion kWh (2000)

Electricity - imports 44.5 billion kWh (2000)

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

Exports $560.7 billion (f.o.b., 2001 est.)

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

Exports - partners EU 56% (France 11%, UK 8%, Italy 8%, Netherlands 6%, Belgium/Luxembourg 5%), US 10%, Japan 2% (2000)

Imports $472.9 billion (f.o.b., 2001 est.)

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

Imports - partners EU 52% (France 10%, Netherlands 9%, Italy 7%, UK 7%, Belgium/Luxembourg 5%), US 9%, Japan 5% (2000)

Debt - external $NA

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

Currency euro (EUR); deutsche mark (DEM)
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; DEM

Exchange rates euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); deutsche marks per US dollar - 1.69 (January 1999), 1.7597 (1998), 1.7341 (1997)

Fiscal year calendar year

NOTE: The information regarding Germany on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Germany Economy 2002 information contained here. All suggestions for corrections of any errors about Germany Economy 2002 should be addressed to the CIA.