| After the end of World War II, Germany took | | | | Public sector reforms and fiscal consolidation and |
| various steps in order to reconstruct its economy | | | | interconnecting them, and to further enhance the |
| and has certainly achieved significant economic | | | | capacity of the economy in order to create more |
| success. This magical economic recovery has put | | | | employment opportunities and to boost the |
| Germany into the third spot after US and Japan in | | | | productivity growth are the major challenges that |
| among the world's largest economies. The careful | | | | Germany faces today. Innovative economic steps are |
| choice of fiscal and monetary policies adopted by the | | | | also needed for creating new business enterprises |
| German government has played a crucial role in | | | | and widening the competition in product markets. |
| turning around the economy. Utilizing Marshall Plan aid | | | | Reducing administrative costs and removing entry |
| to the optimum, building friendly relations with the | | | | barriers should boost more competitive product |
| social partners and adopting plans for rebuilding played | | | | markets. |
| a major role in reviving the economy after the | | | | Germany still remains one of the leading exporters of |
| damage suffered by it in World War II. Germany | | | | the world. However, its export declined in beginning |
| adopted an economic policy with main focus on | | | | months of 2009, German exports to USA declined by |
| creating social market economy. This idea involved | | | | 27.4% or $4.1 billion in comparison to the same period |
| letting the market forces govern the growth of the | | | | in 2008. This may be attributed to the allover |
| economy, while the government, mainly focuses on | | | | weakness witnessed by major economies throughout |
| improving the status of poor and neglected, and | | | | the world lately. |
| checking the flaws in the market. | | | | The GDP or Gross Domestic Product is greatly |
| Germany had a thriving economy, which though, | | | | related to the international trade. Germany's GDP in |
| suffered huge set backs when the East and West | | | | 2009 was $2.8 trillion. 95% of Germany's GDP comes |
| Germany were united in the year 1990. The decline in | | | | from its export and import. $1.5 trillion is the figure |
| economy was mainly because of the differences | | | | for Germany's worldwide exports and $1.2 trillion is |
| between the economic structures of two parts of | | | | the amount of its imports. In comparison, exports |
| Germany. | | | | and imports constitutes about 23% of USA's GDP. |
| This together with ageing population and rising | | | | United States imported about 7.5% of the total |
| unemployment contributed in further deterioration of | | | | German exports, making it the second largest |
| the economy. The labor market suffering from slow | | | | consumer of the German goods. France, Britain, Italy, |
| economic growth and unclear incentives is the main | | | | Holland, Austria, Belgium and Spain are the other |
| hindrance in both hiring and taking work. However, | | | | major consumers of German goods. |
| the business reforms and increasing capital markets | | | | $1.2 trillion worth of goods was imported by |
| are providing the much need impetuous that will help | | | | Germany in the year 2008. Major part of imports |
| Germany to attain its long-terms goals and meet the | | | | was from European Union with China and USA being |
| challenges of European and Global economies. | | | | the other leading countries. |