Germany is the largest national economy in Europe and since the advent of industrialization, it has been a huge driver, innovator, and beneficiary of this globalized economy, being the world’s second largest exporter. Before 1850, Germany was slow in the onset of industrialization. However, by 1900, it had become the world leader in this arena. Today, exports from Germany account for more than one-third of the national output. Because Germany is low in raw materials, they have to import about two thirds of their energy. However, it is the largest producer of wind turbines and solar power technology in the world and most of its exports are in automobiles, machinery, metals, and chemical goods.
Germany’s biggest export partners are France, sending 10.2% of their exports there, the United States with 6.7%, the Netherlands with 6.7%, the UK with 6.6%, Italy with 6.3%, Austria with 6%, China with 4.5%, and Switzerland with 4.4%. Think about it: just how many cars that we drive in the US have a German name? Automobiles make up a high percentage of Germany’s exports and are sent to countries around the world.
The service sector of the German job market accounts for around 70% of the total country’s GDP. Industry and agriculture account for only 29.1% and 0.9% respectively. Thus, this service sector is how the majority of people in Germany make their income. This area consists of jobs in which people offer their knowledge and time to improve the productivity, performance, potential, and sustainability of the country. The unemployment level is fairly low, recording in at only 5.5% in November of 2011.
The southern states are stronger economically than the northern states in Germany due to important industries for automobiles, electronics, and aerospace and biomedicine being located in this area. The home of Mercedes-Benz is located in the west part of Germany, which has proved to be the strongest economic region of Germany. Germany’s location in the rest of Europe is also crucial to its economic success. It is the largest transportation hub in Europe and has dense and modern transportation networks. Clearly Germany is well positioned in the international economy and without this country’s exports, many other countries, including the US, would suffer.
Sources used:
http://fita.org/countries/germany.html
http://www.worldwide-tax.com/germany/indexgermany.asp
It seems as though Germany really takes advantage of their central location when it comes to producing and exporting goods. Germany seems ambitious to succeed, as importing a large number of raw materials just then to go ahead and export the finished product is quiet the process. Being that mercedes benz is one of the larger car companies and is so popular in the US, an economy based on the export of such goods to places like the US would make sense. I am interested to know how much participation the immigrants from Africa have in this production economy, as I read in your previous post about how they are mainly located in Germany getting and education. An education which they are either paying for or being sponsored to obtain, so they must have some involvement in German jobs. I thought it was interesting to think how Germany came from being one of the last to industrialize to now leading the world in exports, where their exports account for 1/3 the global.
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