Germany Market

With annual sales of more than €2 trillion in goods and services, Germany is the world's third largest economy. Accounting for 22 percent of the EU's GDP, it is also the engine driving Europe's economy. Germany led the world in 2007 with EUR 969 billion in exports. This impressive number results not only from the world-class quality of our goods, but also from excellent marketing and government policies. For this reason, in 2007, our economy beat expert forecasts and grew by 2.6 percent. Strong direct investments, healthy labor relations, and detailed government planning and stimuli promise to prolong this economic upswing and lay the groundwork for long-term growth.

 

Germany's economy is founded upon the principle that the government, the population, and the private sector should work together to guarantee benefits and safety for all. Private enterprise is supported by laws that provide businesses with protection and rights. The government is opening more paths for creativity, innovation, and the smooth delivery of goods and services. This is accomplished through educational and employment reforms meant to meet economic demands as well as financial support for businesses. Our government also takes it upon itself to foster a stable economic and social environment and to maintain highly developed infrastructures. To do so, it provides support for education, health care, child care, and other services that promote a healthy, active, and productive society.

Daimler, SAP, Siemens, Bayer, BASF. When people think of Germany, they often think of its industrial giants. But Germany's real economic strength comes from small and medium-sized companies (SMEs). Tens of thousands of SMEs employ almost 70 percent of the country’s workforce and make Germany an economic powerhouse in numerous fields including engineering, renewable energies, and nano- and biotechnologies. An economy based on small business allows new companies to enter the playing field more easily and for products to be realized more quickly. Moreover, this environment creates a high degree of specialization among companies, which allows them to claim niche positions in the market.

 

With EUR 439 billion in foreign investments, Germany is a much sought-after business destination. Approximately 45,000 foreign companies – including the world's 500 largest corporations – operate here. US investments reached EUR 48 billion in 2006, almost as much as total investments from the rest of Europe combined. Business executives value Germany’s world-renowned high-precision engineering, skilled workers, and outstanding infrastructure – not to mention Europe's largest domestic market. Moreover, as the government has considerably lowered corporate taxes – and is currently in the process of making the labor market more flexible and reducing bureaucracy – investing in Germany is becoming even easier.

 

Germany has Europe's most reliable energy infrastructure and its most advanced internet and telecommunications infrastructure with relatively low communication costs. Our government facilitates the safe and swift movement of goods, information, and people. All trans-continental paths meet here in Europe's center, offering excellent proximity to customers, suppliers, and sources. We've constructed an advanced network of airports, seaports, inland ports, waterways, and railroads. Warehousing and processing centers, as well as freight villages and intermodal facilities, see to it that goods are delivered on-time. 60,000 logistics companies employing 2.5 million people bring in Europe’s highest turnover level (EUR 170 billion in 2006). Of the  EUR 730 billion spent on logistics services in Western Europe, 23 percent is spent in Germany.

 

Germany offers Europe's most highly trained and reliable employees, whose professionalism and qualifications are recognized and admired worldwide. 84 percent of the Germany population have been trained to university entrance level (Abitur) or possess a recognized vocational qualification (Secondary Stage II) - compared with the OECD average of 67 percent. Vocational schools keep a close eye on market trends and adjust their programs to quickly meet changing market demands. 391 universities and universities of applied science graduate highly qualified professionals, including more than 44,000 engineers in 2007. Wages have held steady and excellent labor relations make German workers among Europe’s most motivated and loyal. The workforce has one of the world's highest productivity rates, while unit labor costs are declining. Moreover, our government is reforming employment laws to help labor flexibility match changing market needs.

 

Numerous internationally respected scientists and Nobel laureates are part of Germany's long history as a world leader in innovation, and "Made in Germany" is an unmistakable mark of quality. German companies, universities, and the government annually devote EUR 55.7 billion to R&D. We trail only the United States in the annual number of registered patents, and lead the world in total patents relative to population size. According to the OECD, Germany is among the world's foremost knowledge-based economies when it comes to human resources in science and technology (HRST). Our universities and research institutes closely collaborate with business and facilitate the transfer of sophisticated ideas and state-of-the-art developments to the global marketplace. As a result, production and research in nanotechnology, biotechnology, and IT and communications technology are world-class, and we are the world's third largest exporter of R&D intensive goods.