Germany has the largest national economy in Europe, the fourth largest by nominal GDP in the world, and ranked fifth by GDP (PPP) in 2008. Since the age of industrialisation, the country has been a driver, innovator, and beneficiary of an ever more globalised economy. Germany was the world's largest exporter for some years. It was surpassed by China in 2009 and is currently the second largest exporter and generates a trade surplus. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world. The largest annual international trade fairs and congresses are held in several German cities such as Hanover, Frankfurt, and Berlin.

Of the world's 500 largest stock market listed companies measured by revenue, the Fortune Global 500, 37 are headquartered in Germany. In 2007 the ten largest were Daimler, Volkswagen, Allianz (the most profitable company), Siemens, Deutsche Bank (2nd most profitable company), E.ON, Deutsche Post, Deutsche Telekom, Metro, and BASF. Among the largest employers are also Deutsche Post, Robert Bosch GmbH, and Edeka. Well known global brands are Mercedes Benz, SAP, BMW, Adidas, Audi, Porsche, Volkswagen, and Nivea. It is estimated that German companies were losing about ?50 billion ($87 billion) and 30,000 jobs to industrial espionage every year.

Germany is a strong advocate of closer European economic and political integration, and its commercial policies are increasingly determined by agreements among European Union (EU) members and EU single market legislation. Germany uses the common European currency, the euro, and its monetary policy is set by the European Central Bank in Frankfurt. Prior to 1999, the official currency was the Deutsche Mark. As of 1 January 1999, this was converted to the euro at an exchange rate of 1 euro for 1.95583 German marks, for accounting purposes. Actual euro coins and banknotes followed on 1 January 2002.

Two decades after German reunification, standards of living and per capita incomes remain significantly higher in the states of the former West Germany than in the former East. The modernisation and integration of the eastern German economy continues to be a long-term process scheduled to last until the year 2019, with annual transfers from west to east amounting to roughly $80 billion. The overall unemployment rate has consistently fallen since 2005 and reached a 15-year low in June 2008 with 7.5%. In 2009 the unemployment rate was 8% in the whole of Germany; in the former West Germany it was half the rate compared to the east.

The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle. In January 2009 the German government under Angela Merkel approved a ?50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates.

Tags: European Union, GDP, economy