Documentos de Académico
Documentos de Profesional
Documentos de Cultura
ECONOMY
TABLE OF CONTENTS
ABSTRACT ......................................................................................................... ii
INTRODUCTION ................................................................................................ 1
3. REFERENCES ...................................................................................... 6
INDEX OF TABLES
Table 1 ................................................................................................................ 2
ii
ABSTRACT
This essay aims to review German economic situation, first an overview about
the history of German economic and its recovery after the First and Second World War
and the crisis in 2008. Then, a review about the actually economy, the model of
economy that Germany apply and the economy policies. Germany was affected for the
First and Second World War, but its economy improved thanks the economic model
that Germany used based in social economy and with a strong participation in the export
INTRODUCTION
Germany faced three big crises that affect its economy the first was the First
World War that made German economy unstable and with debt, second was the Second
World War where Germany was divided in two with separate and different politics, and
finally the crisis in 2008 where Germany was called the sick man of Europe (Storm,
After the war, Germany was devastated. Their industry and structures were
destroyed, their allies could not help them so they understood that the only ones who
could help them would be themselves. After the ended of the war, the Germans began to
rebuild their cities. In 1946 began to open fairs to use the artillery for industrial use,
they also had food problems and that is why they started the informal trade, where
people exchanged food for other services. Thanks to the Marshall Law, the economy
was booming so it was not long before the debt was paid. There was employment and
good wages, but this hegemony did not last for the 60`s, it construction of the Berlin
Wall and by the delays of the Bundesbank disappeared several industries. (Reina, 2014)
After the crisis in 2008 Germany was called the sick man of Europe, but now
Germany has the more rapidly growing and dominated by financial markets
coordination (Storm, S. & Naastepad C., 2014). Mercedes Benz among others, became
the German pillar to base, but by the crisis of 2008 its GDP fell with respect to other
years. As of 2011 Germany returned to be power and maintains the 4th place until
1. LITERATURE REVIEW
Germany is considered the 4th world power since its economy is one of the best
in Europe. In 2016, Germany's GDP growth in 1.7%, this was mainly impulse by
The German unemployment rate is the lowest in history, with a figure of 5%.
The table below shows the status of the economic indicators for 2016.
The table 1 shows the current indicators of Germany, there is indicators from
2014 to an estimate of this year and the next year. It can be observed that indicators
such as inflation rate, unemployment, General Government Gross Debt, etc., decrease
3
each year as of 2011. This implies that there is a good management by the government
Agricultural sector:
Industrial sector:
Other Sectors:
o 69% of GDP
The German model of economy is based in labor market reforms and market
mechanisms. The labor market reforms create strong price and makes that Germany a
became a potency in Europe is the technologic used in the manufactory. About the
export market, Germany has 18% of the total word exports, then France follow them
with 3.6% and Spain with 0.9% (Storm, S. & Naastepad C., 2014).
4
The economy is based in the export because this create new jobs and money enter to
the country. But, that the economy strongly depends of the export it made more
that makes high productivity in the manufactory (Storm, S. & Naastepad C., 2014).
German legislation designed the competition policy to regulate the market and
prevent the abuse of dominate market. The government stablish some subsides to
improve the enterprise and export. The highly developed of the German economy is
based in the industrial policies and the competition law. The industrial policies include
the privation and regulation programs (Smith, 2003). The Government helped the firms
by financing part-time workers, this made easier to Germany faced the crisis and made
The tough crisis that Germany experienced from 2008 to 2011.General Government
The South American countries should take Germany as an example to be first world.
3. REFERENCES
Funk, L. (2012). The German economy during the financial and economic crisis since
2008/2009. Berlin: Print Compensated. Retrieved from
http://www.kas.de/wf/doc/kas_33244-1522-1-30.pdf?130109020811
Reina, W. (2014, Noviembre). Economa Alemana, Situacin Actual. Retrieved from
http://repository.unimilitar.edu.co/bitstream/10654/13102/2/Economia%20Alem
ana%2C%20situaci%C3%B3n%20actual.pdf
Santander TradePortal. (2016). Retrieved from
https://es.portal.santandertrade.com/analizar-mercados/alemania/politica-y-
economia?&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memo
riser
Smith, E. (2003). German Economy. London and New York: Routledge.
Storm, S. & Naastepad C. (2014). Crisis and Recovery in the German Economy:.
Structural Change and Economic Dynamics, 11-24.
doi:doi.org/10.1016/j.strueco.2015.01.001