Germany service sector

Germany has the largest population in the European Union with 84.5 inhabitants in January, 2010. The prosperous German economy attracts millions of immigrants from around the world as it is the third largest country in terms of immigration. Germany is bordered by Poland, Czech Republic, Austria, Switzerland, France and Netherland. The land area is around 357,021 square kilometers and has maintained a high standard of living. Germany is known for its well established social security system which stems from the flourishing German economy. In the world, the German economy ranks 4th in terms of nominal GDP and 5th in terms of purchasing power. Germany is the world’s second largest trader both in terms of imports and exports.

Germany is also the hub of global scientific and technological developments. Germany is the largest economy in the European Union. It benefits from a large pool of talented work force that has enabled Germany to dominate the vehicles, machinery, chemicals and household equipment vertical across the globe. It is this strong and productive work force that enabled Germany to face recession with a resilient face and the Germany economy could manage to have a GDP (purchasing power parity) of $2.182 trillion in 2009. Germany is one of the most highly developed industrial nations in the world and third largest national economy after the USA and Japan. In 2000, Germany’s Gross Domestic Product (GDP) totaled EUR 2.42 trillion, which translates into per-capita GDP of EUR 29,455.

This figure can be attributed primarily to foreign trade. With an export volume of EUR 969 billion or one-third of GDP in 2007, Germany is the biggest exporter of goods worldwide, and as such is considered to be the “export world champion”, more of a global player than almost any other country and more strongly linked to the global economy than many other countries. More than every fourth euro is earned from exported goods and services – and more than every fifth job depends on foreign trade. The most important economic centers in the country are the Ruhr region, the Munich and Stuttgart conurbations, Cologne, Hamburg, Berlin and Leipzig. Germany’s economic structure is typical of highly industrialized economies that often have a very strong services sector. In 1999 about 68.4 percent of the GDP was contributed by services, 30.4 percent by industry, and 1.2 percent by agriculture, forestry, fishing, and hunting.

The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. in 2008.. Approximately 63.6 percent of the country’s work-force was employed in services, 33.7 percent in industry, and 2.7 percent in agriculture. Of the world’s 500 largest stock market listed companies measured by revenue, the Fortune Global 500, 37 are headquartered in Germany. In 2010 the ten largest were Volkswagen, Allianz, E.ON, Daimler, Siemens, Metro, Deutsche Telekom, Munich Re, BASF, and BMW.[13] Other large German companies include: Robert Bosch, Thyssen Krupp, and MAN (diversified industrials); Bayer and Merck (pharmaceuticals); Adidas and Puma (clothing and footwear); Commerzbank and Deutsche Bank (banking and finance); Aldi, Lidl and Edeka (retail); SAP (computer software); Infineon (semiconductors); Henkel (household and personal consumer products); Deutsche Post (logistics); and Hugo Boss (luxury goods). Well known global brands are Mercedes Benz, BMW, Adidas, Audi, Porsche, Volkswagen, DHL, T-Mobile, Lufthansa, SAP, and Nivea.

IV. Statement of the ProblemThis study aims to distinguish the service sector of Germany and Philippines. These are the following question: General Problem1. Is the Service Sector of Germany has significant to its economic progress? 2. Does the service sector of the Philippines affect its economic progress compared to the service sector of Germany? Specific Problem

1.a Does it help the government of Germany?1.b Does it facilitate the domestic growth of Germany?1.c Does service sector contributes to the standard of living of the citizens?

Statement of hypothesesIn Germany’s economy, the service sector is not significant to its economic progress. The service sector only involves the employment rate and labor market. Hence, the service sectors in the Philippines influence its economic progress compared to Germany. The service sector of Germany adds the standard of living of citizens especially those who are employed. Domestic growth increases as the service sector implied little. Thus, it doesn’t help the growth of GDP. The service sector doesn’t help the government because of its weak progress to the economy.

III. DATAPorsche, BMW, Daimler, Siemens, Lufthansa and SAP all represent Germany. Together with these global players, numerous world market leaders from the Mittelstand shape the third largest economy in the world. These small and medium-sized enter prises are the core of the German economy. It is mostly their merit that “made in Germany” is respected worldwide as a symbol of quality. In 2008, Germany held the title of “world export champion” for the sixth time. However, China is about to overtake Germany because business with our sales hits − cars and machinery − is ailing in the global finan cial and economic crisis.

Germany’seconomicperformancePercentage rate of change of the price adjusted gross domestic product

Structure of the German economyPercentage shares of the economic sector sinGDP,2008