Germany Industry Sectors

By: EconomyWatch Content   Date: 24 March 2010

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As a country with limited amount of natural resources, Germany relied heavily on its industry and services, both contributing a total of 99.2 percent of the nation's GDP, to develop the economy to one of the top 5 economies of the world, and the largest in Europe.

Germany boasts as major players in industries like automobile manufacturing, machinery, precision equipments, heavy automotive, technology and softwares, and have carved out their own niche in the global market. Though the 2008 financial crisis did halt Germany's economic growth, when the GDP contracted by 5 percent in 2009, Germany's export-orientated economy is expected to grow by 5.5 percent in 2011.

Germany's Industry Sectors

Germany has a small agriculture, which contributes only 0.9 percent of the nation's GDP in 2010. Despite the small agriculture industry, Germany is ranked third in agricultural production behind France and Italy in the European Union. Furthermore, the nation is able to provide 90 percent of the population's nutritional needs with its domestic production. Agricultural produced by Germany includes potatoes, wheat, barley, sugar beets, fruits, cabbages, cattle, pigs and poultry.

Industry in Germany accounts for 27.9 percent of the country's total GDP, and employs 29.7 percent of the workforce. Germany is traditionally strong in industrial products, as prove by its export success in mechanical engineering and automobiles. The country is the world's forth largest producer and the largest exporter of automobiles, which includes world renowned brands like BMW, Mercedes-Benz and Porche.

Germany's industry growth is also driven by many small and medium sized enterprises called Mittlestand. These are family-owned companies with less than 500 employees. Mittlestand in Germany currently has more than 3 million companies, and employs more than 70 percent of the country's workforce.

Services in Germany makes up a large portion of Germany's economy, contributing 71.3 percent of the country's GDP and employs 72 percent of the workforce. Germany is renowned for its highly skilled labour force and this ranks Germany third in the provision of services among exporting nations worldwide. It is also ranked first in skill-intensive services like technical services, IT-sevices and financial services.

Although exchange of services contributes to the nation's GDP, many businesses are reluctant to cross borders, mainly due to legal restrictions and working process from the provision of services. As such, the Germany government is working towards removal of these barriers through bilateral agreements in the General Agreement on the Trade in Services (GATS), and through the implementation of the EU services directive.

 


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