The German economy has always been the largest economy in the European Zone. This is a post-industrial country, the main economy of which is the services sector, production (23-28%) and agribusiness (0.5-1.5%). The main characteristics of the economy are a well-developed infrastructure and highly skilled workforce.
A feature of the economic life of Germany are the following. The country's economy is organized on the basis of the principle of a social market economy, in which the social balance is combined with market freedom. In the center is the entrepreneurial activity of the state, which ensures an even distribution of social benefits.
In recent years, the German economy has experienced certain difficulties associated with the implementation of this model. High social guarantees have led to the fact that a very high percentage (about 40) goes to pay for labor and contributions to social funds. In this regard, taxation has increased significantly. Today, the tax rate on retained earnings is 50%.
A very important role in the economy is played by banks, which are the largest shareholders of industrial enterprises in the service sector. Within the territory, economic development is uneven. Up to now, the modernization and integration of the economy of the eastern part of the country has not been removed from the agenda.
In general, the German economy is export-oriented. Over the past decade, Germany's presence in the global market has expanded significantly. The countries of Europe are still the main trading partners (first of all, these are France and Great Britain).
The Statistical Office of Germany published the latest data on the development of the country in mid-August 2012. In the first half of 2012, the German economy grew by 0.5 percent, in the second - by 0.3 percent. Analysts expect further improvement in the economic sphere: further growth in exports of German goods, increase in profits are expected. Germany managed to avoid a recession, despite the fact that industrial production is characterized by some slowdown. This decline was offset by growth in services and construction.
In comparison with other European countries, Germany, whose economy has always been particularly strong, feels very good. Today there is a recession in the economies of Greece, Italy, Spain, and France is experiencing a period of stagnation. Against this background, the situation in Germany looks particularly optimistic. It is thanks to this country that the euro can strengthen against the dollar.
The standard of living in Germany remains high, despite the crisis, which has affected almost all areas of its economy. Of course, the crisis has shaken the country's position, but today it is moving with confident steps towards the restoration of its former positions. The economic situation in the country is characterized by stability. Experts see the reason for this in the fact that Germany was able to form stable trade ties with the eastern regions (China and other countries), which also proved to be resistant to the crisis.
The German economy today occupies a leading position among European economies. The last two years, Germany has been characterized by the highest rates of economic development, which allowed it to receive positive ratings support. Against the general negative economic European background, Germany is even demonstrating a decrease in unemployment, which was made possible thanks to earlier structural reforms.
A positive role for the economy was also played by the fact that German automotive products successfully mastered the American market. In addition, it should be noted that the crisis did not affect the real estate sector. The increase in public investment also played a positive role in the country gaining a strong position in the international market.