Germany is the fourth largest economy in the world measured by nominal GDP and the largest economy in the euro area – accounting for about 28% of euro area GDP. The economy is export-oriented (Germany is the world’s second largest exporter – surpassed by China in 2011) with a large current account surplus. Germany is a leading exporter of machinery, vehicles, chemicals and household equipment. The economy has become very competitive after a decade of very modest increases in unit labour costs. The government debt and deficit is lower than the euro area average. The constitution has been amended so that it puts an upper limit on the federal government’s structural deficits at 0.35% of GDP as of 2016. The German government debt is rated AAA by all the major rating agencies though Moody’s put Germany on negative outlook in July 2012. Germany is expected to reduce its sovereign debt slightly in 2013-14.
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Danske Bank