Economy
Currency
The euro (1 EUR = 100 cents) is the legal tender for 321 million
people in 15 European countries:
Austria, Belgium, Cyprus, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, Malta, Portugal, Slovenia, Spain and
The Netherlands.
Go to the European Central Bank for more information.
Exchange rates
1 EUR = 1.47 USD (August 2008)
1 USD = 0.68 EUR (August 2008)
Economic Data
Year | Average Unemployment rate | Annual Inflation rate |
---|---|---|
2002 | 9.8% | 1.4% |
2003 | 10.5% | 1.0% |
2004 | 10.6% | 1.7% |
2005 | 11.7% | 1.5% |
2006 | 10.8% | 1.6% |
2007 | 9.2% | 2.3% |
2008 (March) | 8.0% | 2.9% |
Note: The unemployment rates of East and West Germany differ.
Please check the German Department of Labor for detailed information. More...
Source of unemployment and inflation rates: German Central Bank
.
Year | GDP (billion EUR) |
---|---|
2002 | 2143 |
2003 | 2164 |
2004 | 2211 |
2005 | 2245 |
2006 | 2322 |
2007 | 2424 |
Source: German Central Bank
U.S. Exports and Imports to Germany
After Canada, Mexico, China and Japan, Germany is the fifth largest trading partner of the U.S.
2000-2007
Note: all figures in millions of U.S. Dollars
Year | Exports to Germany | Imports from Germany | Balance |
---|---|---|---|
2000 | 29,448.4 | 58,512.9 | -29,064.5 |
2001 | 29,995.4 | 59,076.6 | -29,081.2 |
2002 | 26,629.6 | 62,505.7 | -35,876.1 |
2003 | 28,831.9 | 68,112.7 | -39,280.8 |
2004 | 31,415.9 | 77,265.6 | -45,849.7 |
2005 | 34,183.7 | 84,750.9 | -50,567.2 |
2006 | 41,319.1 | 89,082.0 | -47,763.0 |
2007 | 49,652.0 | 94,364.5 | -44,712.5 |
Source: U.S. Census Bureau
Main Exports and Imports by Commodity with Germany*
Note: all figures in thousands of U.S. Dollars
Commodities | Exports | Imports |
---|---|---|
Food and live animals | 848,758 | 712,311 |
Beverages and Tobacco | 337,741 | 567,341 |
Crude materials, inedible, except fuels | 1,858,159 | 972,129 |
Mineral fuels, lubricants and related materials | 235,539 | 2,249,581 |
Animal and vegetable oils, fats and waxes | 17,576 | 13,650 |
Chemicals and related products, n.e.s. | 8,563,947 | 15,786,658 |
Manufactured goods classified chiefly by material | 3,334,843 | 9,596,921 |
Machinery and transport equipment | 26,739,400 | 54,071,216 |
Miscellaneous manufactured articles | 6,046,398 | 8,695,756 |
Commodities and transactions not classified elsewhere in the SITC | 1,669,645 | 3,974,233 |
Total | 49,652,006 | 96,639,795 |
*Information for the year 2007. (Import Information represents C.I.F value)
Source: U.S. Census Bureau
German Business Practices
Business Hours
- normal working hours: 09.00am - 05.00pm
- retail opening hours: German states have different regulations. Opening hours vary. 24h shopping on Sundays is only available at certain gas stations and at other sites related to travel.
Labor
Wages and Productivity
When compared internationally, wages in Germany are among the highest in the European Union and worldwide. Average industry wages in 2005 were 27.9 EUR (Western Germany) respectively 17.4 EUR (Eastern Germany) per hour. Nonetheless, German labor is known to be productive and skilled. German quality is famous throughout the world.
Labor Law
Unions are powerful and large in Germany. Workers are protected by strong labor laws that provide them many different rights. They are much more substantial than in the U.S. Here are some examples:
Ordinary dismissal of workers must be proceeded by notice, which depends on the duration of the time the employee was with the company. It may vary from 1-7 months. The employee may also challenge the dismissal in court.
The Mother Protection Law grants a mother a total of 36 months leave. 6 weeks prior to birth and 8 weeks thereafter are on paid leave. The mother and the employer can agree on a parental leave (max. 36 months), after which the employer provides her with the same job prior to the birth of the child.
Social Security and Health Care cost are equally split up between the employee and the employer.
Average working hours are 37,5 hours/week and annual leave varies
between 20 and 30 working days.
For additional information on labor in Germany please visit:
Central
Office of the Employment Agency
Tax
value added tax: 19%
value added tax for food: 7%
corporate income tax on distributed and undistributed income:
25%
If you are a foreign company looking to register for VAT in
Germany, please contact the following institution:
Bundeszentralamt für Steuern
An der Küppe 1
D-53225 Bonn
www.bzst.bund.de
phone: +49 (0) 228 406-0
fax: +49 (0) 228 406-2661
eMail: poststelle@ bff.bund.de
Depending on where you will carry out business in Germany, you
will need to contact that local Finance office (Finanzamt). For
all office listings please look at the following website:
www.finanzamt.de
If you are already registered for VAT in Germany and want to
claim VAT back, please send an email to vatrefund@
bff.bund.de