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Economy Overview

• Projected GDP = 1.8%

• 10 consecutive years of economic

expansion

• 1 Million jobs will be added in 2019

• Export growth of 2.8% in 2018 and

expected 3.7% in 2019

Exports, Imports and

Trade

EXPORTS:

• Automotive (BMW, Audi, Porsche)

• Machinery

• $37 Billion in raw and processed agricultural goods

• 3rd largest exporter

IMPORTS:

• $973 Billion

• 3rd largest importer

• Vehicle parts and cars

TRADE:

• Trade surplus of $276.6 billion (2017)

Global Economic Outlook

• Accounted for 28% of entire EU Economy

• Largest economy in Europe

• Better managed growth since the financial crash

• 4th Largest nominal GDP globally

• 5th largest GDP (PPP)

Unemployment

• Lowest Unemployment Levels since 1990

• 3.4%.

• Trending

towards level not seen since

1980s

Inflation

• 2.3% Inflation Rate

• Slightly above target

inflation rate ~2%

Consumer

Spending

• Housing Market is rising

• Housing Prices

2.75% Growth Q/Q

Wage Growth

Financial Markets

• Main exchange is the Frankfurt Stock Exchange

• Major index is the DAX, 30 Major Companies on the FSE

• Includes Adidas, Bayer, Deutsche Bank

FDI in Figures

Currency Conditions

• Euro (EUR) since 2002

• European Central Bank

• Exchange Rate

• EUR 1 : USD 1.15

• USD 1 : EUR .87

• Big Mac Index – 19.2% undervalued

Big Mac Index

Euro Vs Dollar

Country Risks

• Uncertainty in the European Union

• Ageing Population and low fertility rates

• China's involvement in Germany's economy

• Intervention by German government

• High marginal income tax rates and strict labor laws

Socioeconomic Culture

• Ranked 3rd in the GCI

• Highest country within the

European Union

• Biggest strengths in innovation

capacity, business dyamism, and

health.

Germany's Ranking per Category

Germany's Strengths

• Pillar 12: Innovation Capacity

• Interaction and Diversity

• Research and Development

• Commercialization

• Pillar 11: Business Dynamism

• Administrative requirements

• Entrepeneurial culture