28 December, 2013.
As 2013 comes to a close, Germany’s position in the world needs little introduction. The economy is bustling, as the largest in Europe and 5th largest in the world. Germany’s GDP, at € 2.48 trillion, accounts for nearly a fifth of the entire Eurozone’s annual production. Exports are strong, and with a current account surplus of over € 160 billion, the products of Germany’s highly skilled labor force are traveling far and wide abroad.
The subsequent blogs will look at many of factors that make Germany such an economic powerhouse: a high savings rate, incredible labor productivity, built-up physical capital and an infrastructure allowing businesses to thrive, and an abundance of trading partners willing to make mutually beneficial deals.
The road for the future looks smooth, but it will not be downhill. An aging labor force will create opportunities to alleviate youth unemployment, but today’s youth may not be enough to meet demand. The energy sector has recently been tossed into turmoil as the government announced a decision to move to an entirely ‘green’ by eliminating traditional energy sources partially and then entirely by 2050. The largest source of uncertainty, however, may lay outsides its borders. Germany’s strength will much depend on the strength of rest of the Eurozone and the European Union. The recovery from the financial crisis has been slow and threatens to drag down Germany’s full potential.
2013 was a good year for Germany, could 2014 prove better still?