German economy

 The country chosen is Germany. The country is of immense interest because of its peculiar history related to the transitions it has gone through over last century both in terms of economic and political system as well as the way the people of Germany have adopted to these transitions. From the end of the German empire in 1918 to the formation of the Wiemar republic that went through several fractions, divisions and reunifications over the world War and post War periods, Germany remained one of the troublesome and yet an advanced economy through out the last century.

It will be of interest to take Germany as a case in this module. Germany with 81. 7 million population as on 2010 is the largest populated country in the EU (Lanzieri, 2009). As per the CIA fact Sheet, Germany is the fifth largest economy in the world and the largest in the Europe. Germany is a leading exporter of capital goods like machinery and is endowed with a highly skilled labor force to support such a economic advantage.

Because of the rebound of the manufacturing sector and a steady consumer demand, Germany came out of the recent Global Economic and Financial crisis in the third quarter of 2009 itself where as some other European economies are still struggling to come out of recession. It is however facing increased unemployment due to recession (CIA, 2010). The International Monetary Fund has forecast a 1. 2 percent increase in GDP during 2010 and 1. 7 percent in 2011 (IMF 2010). The current recession have impacted on the current GDP of the German economy. It experienced a decline in GDP from an estimated $2.921 trillion in 2007 to $2. 811 trillion in 2009, although there was a marginal increase in 2008 to $2. 959 trillion in 2008. The country has the largest GDP followed by the UK at 2. 1 trillion during 2009 (CIA, 2010).

As per a recent BBC report, Germany is the second largest exporter in the world with an export value of $1. 170 trillion in 2005 (BBC, 2006). German Exports account for more than one third of the national GDP. As an economy poor in raw materials the economy prospers through exports of machines, and other capital goods and imports largely the raw materials like energy comprising of oil and natural gas.

The social-market economy model that is being experimented in Germany with free enterprise and competition along with a high level of social services is believed to have saved the country during the recent crisis with increased output and trade at one hand and increased welfare and services on the other (FRD 2008) REWFERENCES: BBC (2006) “German trade surplus hits record”, Accessed on 15 July 2010 at http://news. bbc. co. uk/2/hi/business/4692638. stm CIA (2010) “Fact Sheet”, Accessed on 15 July 2010 at https://www.cia. gov/library/publications/the-world-factbook/geos/gm. html FRD (2008) Country Profile, Germany,

Accessed on 15th July 2010 at http://lcweb2. loc. gov/frd/cs/profiles/Germany. pdf IMF (2010) “Modest Recovery in Store for Germany”, Accessed on 15 July 2010 at http://www. imf. org/external/pubs/ft/survey/so/2010/car033010a. htm Lanzieri, Giampaolo (2009) “First Demographic Estimates for 2009, Eurostat, Accessed on 15 July 2010 at http://epp. eurostat. ec. europa. eu/cache/ITY_OFFPUB/KS-QA-09-047/EN/KS-QA-09-047-EN. PDF