Six strengths of the German economy

Germany is now the world’s third-largest economy behind only the USA and China, slightly ahead of Japan. Skilled workers are urgently needed in Germany Driving the energy transition forward and transforming Germany into an environmentally-friendly economy. Thanks to strong energy security there are no shortages of gas, electricity, renewable power or oil.
Six reasons behind the stability of the German economy.

1. Germany has a strong industrial foundation Industry contributes a significant amount of German economic output, forming the foundation for growth and prosperity. In terms of turnover and headcount, four sectors are dominant: the automotive, mechanical engineering, chemical and electrical industries. In these sectors you’ll find companies with decades of business heritage and global reputations such as Mercedes-Benz, Siemens, BASF and Bosch.
2. Germany products are known for their quality and engineering skill The passion for innovation and high performance of the German economy are among the country’s greatest strengths. Germany registers more patents than any other European country and ranks 5th globally. Many less well-known companies are “hidden champions”, market leaders in their sector. Startups are a major factor, and Berlin is considered one of the world’s most important startup ecosystems.
3. German workers are well trained and highly skilled Germany’s dual vocational educational system produces highly trained skilled workers, who are the foundation of a productive economy. German students can train in officially recognised training programmes for 324 different careers including industry, and the skilled crafts and trades. These programmes offer predefined training pathways which combine time in the workplace and in the classroom. This is how the world-famous dual system works.
4. Research and development lead the way Businesses and researchers work hand in hand on research and development. Around two thirds of substantial investments come from business, and one third from Germany’s more than 400 universities and research institutions. Among the research institutions are the Helmholtz Centres, and the institutions of the Fraunhofer-Gesellschaft, Max Planck Society and the Association.
5. Germany focuses on exports The German economy is strongly focused on exports. Along with China and the US, Germany ranks among the world’s three largest export nations. Exports account for 50.3% of Germany’s economy. Sophisticated industrial products bearing the “Made in Germany” badge form the basis of German exports.
6. Germany has a strong SME sector Yet one of the great strengths of the German economy is not well known around the world. The beating heart of the German economy is its small and medium-sized enterprises. SMEs make up 99.6% of all businesses in Germany with an annual turnover less than €50m and fewer than 500 employees, but almost 1,000 of them are global market leaders known as “hidden champions”.