Germany PESTLE Analysis & Macroeconomic Trends Market Research Report Launched from

Germany’s economic growth is expected to decline slightly but remain stable due to strong job creation and a fiscal stimulus. Due to trade-related uncertainties and diminishing world demand Germany’s export is expected to be affected. On the other hand, private consumption is expected to increase due to strong wage growth and fiscal measures that increase German household disposable income. Also, low interest rates, high capacity utilisation and growing housing demand is expected to boost residential and business investment. The current account surplus is expected to decrease as stronger domestic demand fuels imports.


A further rise in protectionism can negatively affect Germany’s economic growth and employment, particularly if it involved slower growth in China, tariffs on Germany’s car exports, renewed financial market turbulence and economic shocks in large European economies. On the other hand, successful integration of immigrants into the labour market, improved education and training, and an increase in women’s working hours as a result of recent reform efforts are expected to improve labour shortages and allow companies to expand production.


In World Bank’s ease of doing business ranking Germany was ranked 24 out of 190 countries in 2018. Germany’s ease of doing business ranking slipped from 20th position in 2017.


Germany, officially The Federal Republic of Germany, is a federal parliamentary republic in western central Europe. Berlin is the capital and also is the largest city in Germany. The country has three levels of government in which the responsibilities, roles and power are distributed accordingly and they are federal, states, and local. Germany became the first country in Europe to establish a development ministry, in 1961.


Germany had estimated population of 82.732 million in the year 2016 and expected to reach 83.454 million by 2022. Germany’s 49.81% population (around 41.212 million) was employed in 2016 and the unemployment rate was 4.158% of total labor force.


Germany’s real gross domestic product (GDP) was around Euro 2832.18 billions in 2016 whereas the nominal GDP was Euro 3132.67 billions. This resulted in GDP deflator 110.61. Per capita GDP was estimated at USD 41902.28 whereas purchasing power parity (PPP) based per capita GDP was estimated to be at USD 48110.85.


The output gap for Germany in 2016 was 0.383% of the potential GDP which indicates that German economy was outperforming by managing actual output higher than it’s maximum potential.


In 2016, German government’s revenue was Euro 1411.38 billions whereas the expenditure was Euro 1387.68 billions. This resulted German government’s net lending / borrowing at Euro 23.705 billion in 2016 indicating that enough financial resources were made available by the government to boost economic growth.


The current account balance for Germany was estimated to be at USD 294.34 billions for the year 2016 and is expected to grow at a CAGR of 0.56% and reach USD 291.342 by 2022. This positive current account balance indicates the Germany is net lender to the whole world.


Scope of Germany – PESTLE Analysis and Macroeconomic Trends Market Research Report

– This report provides information about key macroeconomic indicators for Germany.

– This report provides PESTLE (political, economic, social, technological, legal and environmental) analysis for Germany.


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