Economy
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Germany has a social market economy with a highly skilled labour force, a low level of corruption,[180] and a high level of innovation.[181] It has the largest economy in Europe by nominal GDP, which is also the world's third-largest economy by nominal GDP[182] and sixth-largest by PPP-adjusted GDP.[183] Its PPP-adjusted GDP per capita amounts to 121% of the EU27 average.[184] The country's service sector contributes approximately 72% of the total GDP, industry 27%—with Germany having the largest manufacturing sector in Europe—and agriculture 1% as of 2023.[4] The unemployment rate published by Eurostat amounts to 3.2% as of January 2020, which is the fourth-lowest in the EU.[185]
Germany is part of the European single market which represents more than 450 million consumers.[186] In 2017, the country accounted for 28% of the eurozone economy according to the International Monetary Fund.[187] Germany introduced the common European currency, the euro, in 2002.[188] Its monetary policy is set by the European Central Bank,[189] which is based in Frankfurt.[179] Germany is the world's third-largest exporter and third-largest importer,[190] and it has the second-largest trade surplus after China. Its largest trading partners in 2024 were the United States, China, and the Netherlands.[191] Germany's main exports are vehicles, machinery, and chemical goods.[192]
The German automotive industry is regarded as one of the most competitive and innovative in the world.[193] It was the sixth-largest by production and largest by export value in 2023.[194] Germany is home to Volkswagen Group, the world's second-largest automotive manufacturer by vehicle production.[195]
Of the world's 500 largest stock market-listed companies by revenue in 2024, the Fortune Global 500, 29 were based in Germany.[197] The DAX, Germany's stock market index operated by the Frankfurt Stock Exchange, includes 30 major Germany-based companies.[198] Well-known international German brands include Mercedes-Benz, BMW, Volkswagen, Audi, Porsche, Opel, Siemens, Bayer, Allianz, Adidas, Puma, Hugo Boss, SAP, Bosch and Deutsche Telekom.[199] Berlin is a hub for startup companies and has become the leading location for venture capital-funded firms in the European Union.[200] Germany is recognised for its large portion of specialised small and medium enterprises, known as the Mittelstand.[201] These companies represent around 48% of the global market leaders in their segments, labelled hidden champions.[202]
Research and development efforts form an integral part of the German economy,[203] with the country ranking fourth in research and development expenditure since 2005.[204] In 2018, Germany ranked fourth globally in terms of number of science and engineering research papers published[205] and third in the quality-adjusted Nature Index in 2023.[206] Research institutions in Germany include the Max Planck Society, the Helmholtz Association, the Fraunhofer Society, and the Leibniz Association.[207] Germany is the largest contributor to the European Space Agency.[208] The country was ranked 9th in the Global Innovation Index in 2024.[209]