For this post, we have created an infographic that provides an overview of the German Economy 2016. Overall the country’s economy is in a good shape. Despite a decrease in Gross Domestic Product (GDP) from USD 3.86 trillion (in 2014) to USD 3.36 trillion in 2015, Germany still has Europe’s largest economy in terms of GDP. Currently, GDP real growth rate stands at about 1.5%, which is 0.1% lower than in the previous year. Nevertheless, Germany’s per capita GDP (PPP) has increased to USD 46’900 over the same period.
Income vs Expenditure
Germany has increased its budget surplus to USD 31 billion (from USD 20 billion in 2014) over the course of last year. This equals about 0.9% of the country’s GDP. Meanwhile, public debt has also decreased to 71.7% of GDP in 2015 (74.7% in 2014) and the inflation rate currently stands at 0.1% (0.8% in 2014). Contrary to the forecasts, the German economy has experienced decreasing imports and exports in 2015. However, its current account balance remains relatively stable at USD 285.2 billion (USD 287.5 billion in 2014).
Not surprisingly, there have not been any significant changes in terms of the largest industries. The German economy still has powerful service and manufacturing sectors. Hence, the countries largest industries (measured by employment) remain unchanged: retail trade and manufacturing. In addition to that, other relevant industries include healthcare & social assistance, construction, professional scientific & technical services, public administration, and accommodation & food services.
Labor force and Unemployment
Germany’s job market is strong and predicted to flourish even more in the upcoming years. The county’s labor force has increased to 45.4 million over the last year (42.65 million in 2014). In the meantime, Germany has managed to reduce the unemployment to about 4.8% (5% in 2014) on a national level. If we look at regional unemployment, Bayern is still on top of the list with an unchanged unemployment rate of 2.9%. Meanwhile, Berlin still finds itself at the end of the list with an unemployment rate of 9.4%, despite a minor decrease from 9.8% in 2014.
Household Income and Poverty
Like last year, Germany still ranks well above average in income equality. In 2015, the country’s median household income has increased to USD 31’925 (USD 31’252 in 2014). Furthermore, the government has introduced a minimum wage of about USD 11.60 (i.e. EUR 8.50) per hour. Nevertheless, about 15% of the German population still live below the poverty line.
Last Year’s Report
<a href="http://quickonomics.com/2016/08/overview-of-the-german-economy-2016/"><img src="http://quickonomics.com/wp-content/uploads/2016/09/overviewofthegermaneconomy.png" alt="Overview of the German Economy 2016" /></a><br />Source: <a href="http://quickonomics.com/">Quickonomics</a>