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→Economy: add 2008
==Economy==
==Economy==
[[Image:The_castle3.jpg|right|thumb|Neuschwanstein Castle, a popular tourist destination.]]
[[Image:The_castle3.jpg|right|thumb|Neuschwanstein Castle, a popular tourist destination.]]
Germany is the world's third-largest economy and the largest in Europe. The German economy showed substantial improvement in 2007 at 2.5% growth due to the effect of recent economic reforms and strong global economic growth. The export-led recovery is now filtering through to the domestic economy where private consumption has long been at a low level. With a more sluggish global economy, lower growth is expected for 2008.
Germany is the world's third-largest economy and the largest in Europe.
From the 1948 currency reform until the early 1970s, West Germany experienced almost continuous economic expansion. Real gross domestic product (GDP) growth slowed down, and even declined, from the mid-1970s through the recession of the early 1980s. The economy then experienced 8 consecutive years of growth that ended with a downturn beginning in late 1992. Since unification, Germany has seen annual average real growth of only about 1.5% and stubbornly high unemployment. In 2006, Germany had its best year since 2000 with 2.7% growth; for 2007, growth was at 2.5% despite a 3 percentage point VAT hike at the beginning of the year. The government forecasts 1.7% growth in GDP for 2008. Unemployment in 2007 dropped to an annualized average of 9.0% nationwide, but it is still significantly higher--15.1%--in the German states that make up the former East Germany.
From the 1948 currency reform until the early 1970s, West Germany experienced almost continuous economic expansion. Real gross domestic product (GDP) growth slowed down, and even declined, from the mid-1970s through the recession of the early 1980s. The economy then experienced 8 consecutive years of growth that ended with a downturn beginning in late 1992. Since unification, Germany has seen annual average real growth of only about 1.5% and stubbornly high unemployment. In 2006, Germany had its best year since 2000 with 2.7% growth; for 2007, growth was at 2.5% despite a 3 percentage point VAT hike at the beginning of the year. The government forecasts 1.7% growth in GDP for 2008. Unemployment in 2007 dropped to an annualized average of 9.0% nationwide, but it is still significantly higher--15.1%--in the German states that make up the former East Germany.
*Agriculture (0.9% of GDP): Products--corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.
*Agriculture (0.9% of GDP): Products--corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.
*Industry (29.1% of GDP): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.
*Industry (29.1% of GDP): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.
*Trade (2006): Exports--$1.03 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets--France, U.S., and U.K. Imports--$844 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--France, Netherlands, U.S.
*Trade (2006): Exports--$1.03 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets--France, U.S., and U.K. Imports--$844 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--France, Netherlands, U.S.
The German economy showed substantial improvement in 2007 at 2.5% growth due to the effect of recent economic reforms and strong global economic growth. The export-led recovery is now filtering through to the domestic economy where private consumption has long been at a low level.
===Crisis of 2008===
The worldwide [[Financial Crisis of 2008]] hit Germany in the summer, revealing high risk policies pursued by numerous large banks looking for high rates of return outside Germany. In September the government unveiled a $635-billion bailout package for its floundering banks. Economic growth for 2009 is forecast to be an anemic 0.2%.
Automobile manufacturing is a major sector, but the financial crisis caused credit to be harder to obtain; many families postponed purchases. Auto exports fell 10% in October 2008 from October 2007; domestic sales dropped 8%. In contrast 2007 was a record year with production of 12.1 million vehicles and employment of 756,000 workers; an eighth of those jobs were created in the last five years alone.
==History==
==History==