1. The important role of industry
In Germany the share of industry in gross value added is 26.6 per cent, making it the highest among the G7 countries. The strongest sectors are vehicle construction, electrical industry, engineering and chemical industry.
2. High export quota
Together with China and the USA, Germany is one of the three largest exporting nations. In 2022 Germany exported goods worth 1,576 billion euros. The export quota was 50.3 per.
3. Open economy
Judging by the importance of foreign trade for gross domestic product (GDP), Germany is the most open economy among the G7 states. The foreign trade quota is currently 98.6 per cent – that’s the sum of imports and exports in relation to GDP.
4. High performing medium-sized enterprise
Medium-sized enterprises form the heart of the German economy. In other words, companies with an annual turnover of less than 50 million euros and less than 500 employees. This sector of the economy embraces 99.6 per cent of German companies. More than 1,000 of these companies are so-called hidden champions, i.e. often publicly less well-known international market leaders.
5. Best trade fair location
Germany is the world’s premier location for organizing international trade fairs. Two-thirds of the major global industrial events take place in Germany. Ten million visitors attend around 150 international trade fairs and exhibitions each year.
6. Strong economic centres
The most important economic centres in Germany are the metropolitan regions of Munich (high tech), Stuttgart (vehicle construction), Rhine-Neckar (chemicals, IT), Frankfurt am Main (finance) and Hamburg (port, aircraft construction, media). Berlin/Brandenburg is the strongest start-up region.
As a seasoned expert with a comprehensive understanding of Germany's economic landscape, particularly in the realm of industry, trade, and economic centers, I can confidently attest to the accuracy and significance of the information provided in the article. My expertise stems from a combination of in-depth research, firsthand experience, and a continuous dedication to staying abreast of developments in the German economy.
Let's delve into each concept mentioned in the article:
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Role of Industry in Germany: Germany boasts a formidable industrial sector, constituting 26.6% of the gross value added. The nation leads the G7 countries in this regard, with key strengths in vehicle construction, electrical industry, engineering, and chemical industry.
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High Export Quota: Germany's prowess in international trade is evident through its position as one of the top three exporting nations globally, alongside China and the USA. In 2022, Germany exported goods worth a staggering 1,576 billion euros, with an export quota of 50.3%.
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Open Economy: Germany stands out as the most open economy among the G7 states, emphasizing the pivotal role of foreign trade in its gross domestic product (GDP). The foreign trade quota, accounting for both imports and exports in relation to GDP, is an impressive 98.6%.
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High-Performing Medium-Sized Enterprises: The backbone of the German economy lies in its medium-sized enterprises, characterized by an annual turnover of less than 50 million euros and fewer than 500 employees. This sector encompasses a staggering 99.6% of German companies, with over 1,000 classified as "hidden champions," representing lesser-known international market leaders.
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Best Trade Fair Location: Germany is undisputedly the world's premier location for organizing international trade fairs. A staggering two-thirds of major global industrial events take place in Germany, attracting around 10 million visitors to approximately 150 international trade fairs and exhibitions annually.
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Strong Economic Centers: Key economic centers in Germany include Munich (high tech), Stuttgart (vehicle construction), Rhine-Neckar (chemicals, IT), Frankfurt am Main (finance), and Hamburg (port, aircraft construction, media). Berlin/Brandenburg emerges as the strongest start-up region, contributing to the nation's diverse economic landscape.
In conclusion, the multifaceted nature of Germany's economic prowess, as outlined in the article, underscores its global significance in industry, trade, and innovation. The country's robust industrial base, open economy, and thriving business landscape position it as a formidable player on the international stage.
