Evgenia Koptyug
Research expert covering the German market
Germany - Statistics & Facts
Germany is Europe’s most powerful economy, and the most populous country located entirely on the continent. Its population enjoys very high standards of living and a comparatively strong welfare system, while country ranks very highly in terms of human development, equality, and freedom. In the one and a half centuries since Germany's founding, it has played a major role in determining the course of world history, through innovation, cooperation, and politics, although certain periods have also been characterized by turmoil, overshadowed by conflict and genocide.
When the communist system collapsed across Europe during the 1980s, Germany was officially reunified on October 3, 1990. As Germany (Berlin especially) was viewed as the meeting point of democracy and communism in Europe, the dismantling of the Berlin Wall in 1989 came to symbolize the fall of European communism, however, after more than three decades of unity there are still many socioecnonomic disparities between the former-East and West of the country. In recent decades, Germany has re-emerged as a world power and a de facto leader of the European Union. After a brief downturn in the early 2000s, Angela Merkel assumed power in 2005, from which point the German economy became synonymous with stability, resilience, and growth, even during crises such as the Great Recession and the Covid pandemic. Since Olaf Scholz and his coalition government took over in 2021, they have struggled to achieve the same levels of popularity and stability as the preceding administration.
A brief history
Established in 1871, Germany's rapid industrialization, economic growth, and imperial expansion quickly saw it challenge the other world powers on an international scale. German history in the early 20th century was then dominated by its role in both World Wars and the atrocities committed under the Nazi regime. The fallout from both wars saw Germany lose a significant share of its territories and resources as it fell under the influence of other major powers, particularly the victorious Allies following WWII. During the Cold War, the Soviet-controlled east would eventually split and become the German Democratic Republic (known as East Germany, or the DDR), while the other three zones formed the Federal Republic of Germany (known as West Germany). West Germany operated as a liberal democracy with a market economy, while East Germany operated under communist and socialist structures. Both countries saw significant economic growth during the post-war period, and West Germany, along with France, took a leading role in European integration throughout the remainder of the century.When the communist system collapsed across Europe during the 1980s, Germany was officially reunified on October 3, 1990. As Germany (Berlin especially) was viewed as the meeting point of democracy and communism in Europe, the dismantling of the Berlin Wall in 1989 came to symbolize the fall of European communism, however, after more than three decades of unity there are still many socioecnonomic disparities between the former-East and West of the country. In recent decades, Germany has re-emerged as a world power and a de facto leader of the European Union. After a brief downturn in the early 2000s, Angela Merkel assumed power in 2005, from which point the German economy became synonymous with stability, resilience, and growth, even during crises such as the Great Recession and the Covid pandemic. Since Olaf Scholz and his coalition government took over in 2021, they have struggled to achieve the same levels of popularity and stability as the preceding administration.
Demographics and migration
In 2023, Germany had an estimated population of 84 million people, however population growth is very low. The largest city is Berlin, with 3.6 million people, followed by Hamburg and Munich, with 1.8 and 1.5 million inhabitants respectively; however, the largest metropolitan region is the Rhine-Ruhr area, with a population of almost 11 million people across several cities such as Cologne, Düsseldorf, and Dortmund. Since 1972, Germany’s death rate has consistently been higher than its birth rate, meaning that Germany has been experiencing a natural population decline for five decades. Because of these factors, population growth in Germany has largely been dependent on migration, and in 2022, it was estimated that almost 15 percent of the population is foreign. Since the 1960s, Germany has had sizeable migrant populations, particularly through waves of Gastarbeiter (guest workers) who came from Southern Europe and Turkey in the 1960s, before waves of Eastern Europeans arrived after the collapse of communism, followed by Middle Eastern refugees in the past two decades. Of Germany’s 14 million foreigners, roughly 70 percent are from Europe, over 20 percent are Asian, and five percent are from Africa. Turkey is the most common country of origin for foreigners, with almost 1.5 million Turks living in Germany (although there may be somewhere between four and seven million with Turkish heritage), followed by Ukraine and Syria due to the migration crises resulting from conflicts in their respective countries.Economics
In 2022, Germany had a nominal GDP of 3.9 trillion euros (4.1 trillion U.S. dollars), making it the fourth largest economy in the world. With a GDP per capita almost 50,000 U.S. dollars it ranks among the top 10 percent of countries. Germany is a net exporter of goods, with a trade balance of 173 billion U.S. dollars in 2022. It is the third largest exporter in the world (behind the U.S. and China), specializing in technologically advanced goods, particularly automobiles and machinery, electronics, and pharmaceuticals. It’s largest trading partner is the wider EU trading bloc, although the U.S. receives more German exports than any individual country. Due to the coronavirus pandemic, Germany’s national debt to almost 70 percent of it GDP, although this is projected to fall slowly throughout the remainder of the decade.Politics and government
Germany is a federal republic with a parliamentary system. Ultimate legislative power is held by the Bundestag (parliament), while the Bundesrat represents Germany’s 16 federal states on a national level. The country is led by the Chancellor, who is chosen by the party or coalition with the most seats in the Bundestag. The Chancellor is the head of government, while the President acts as the head of state in a more ceremonial capacity. Following the 2021 election, the Social Democratic Party (SDP) won the largest share of votes, and lead the so-called traffic light coalition, along with the Green Party and Free Democratic Party (FDP). This is the first time since 2005 where the Christian Democratic Union (CDU), the most dominant party in German politics since the Second World War, was not in charge. The influence of the Green Party has resulted in a greater push for climate initiatives and public investment, while the FDP generally want to limit spending - conflicts within the coalition have made this administration appear unstable and ineffective to many voters, particularly in comparison to preceding governments. Faced with pre-existing challenges such as the ageing population, skilled labor shortages, weakening infrastructure, and the rise in right-wing populism; alongside recent economic stagnation through inflation, rising energy costs, and other fallout from the Russia-Ukraine war; it remains to be seen how the Scholz government will oversee what increasingly appears to be a tumultuous decade ahead.
