Group 3 : Germany

Balkrishna Ambati 01Anand chipa 06Atul Mane 17Chetan Mhapuskar 18Madhumita Nardekar 20Qudsia Shaikh 30

GERMANY

•Rank :4th (nominal) / 5th (PPP) •Currency: Euro (EUR) •Fiscal year: calendar year

GDP (NATIONAL INCOME ACCOUNTING):•GDP - per capita (PPP) : •$44,729 (2008 est.)•GDP - composition by sector :•Agriculture: 0.9%• Industry: 27.1%•Services: 72% (2009 est.)

Currency• The Euro is the official currency

of Germany• In Germany, interest rate

decisions are taken by the Governing Council of the European Central Bank

• The Euro exchange rate (EURUSD) depreciated 6.54 percent during the last 12 months

• From 1975 until 2010 the EURUSD exchange averaged 1.18

BUDGET:• Expense (% of GDP) in Germany : 29%• Revenue; excluding grants (% of GDP) in Germany: 28% CONSUMER PROFILE AND PURCHSING POWER:• Average annual income: 17 087 euro per inhabitant • Country comparison to Europe: 10  DISTRIBUTION OF FAMILY INCOME - GINI INDEX:• 0.27 (2006

INFLATION RATE (CONSUMER PRICES): • 1.50% (2010 est.)  

LABOUR FORCE:•43.51 million

LABOUR FORCE - BY OCCUPATION : •Agriculture 2.2%• Industry 25.9%•Services:71.9%

UNEMPLOYMENT RATE : •6.7% (2010 est.)•country comparison to the world: •9.3% (2009 est.)

CENTRAL BANK DISCOUNT RATE: •3% (31 December 2010)•5% (31 December 2009)

Germany Stock Market Index •DAX, rallied 957 points or 16.06 percent during the

last 12 months. •From 1970 until 2010 the DAX market value

averaged 2507.31 points reaching an historical high of 8105.69 points in July of 2007

•A record low of 372.30 points in November of 1974.

CENTRAL BANK DISCOUNT RATE:

• 3% (31 December 2010)• 5% (31 December 2009)

Germany Stock Market Index • DAX, rallied 957 points or 16.06

percent during the last 12 months. • From 1970 until 2010 the DAX market

value averaged 2507.31 points reaching an historical high of 8105.69 points in July of 2007

• A record low of 372.30 points in November of 1974.

Imports:

• 72.6 Billion EUR in October of 2010 :• Imports merchandise : motor vehicles, chemical

products, machinery, oil and gas and computers• Import partners : France, Netherlands, Italy, UK,

Belgium, United States and China

Imports of goods and services (% of GDP) in Germany

•40 (2009)•41 (2010)

Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2010 55.8 57.4 68.7 61.9 67.7 72.2 69.5 66.1 70.1 72.6

2009 56.8 55.0 57.9 53.5 50.4 54.9 55.6 51.2 59.5 60.7 56.2 55.8

2008 66.7 67.2 66.8 70.5 66.0 68.0 72.8 64.7 71.0 72.0 66.1 59.4

Export• 86.6 Billion EUR in October of 2010•German economy is heavily export-oriented (the world's

biggest exporter)•Exports accounts for more than one-third of national

output•principal exports are: motor vehicles, machinery,

chemical products, electrical devices and telecommunications technology

•Germany’s main export partners are France, United States, United Kingdom and Italy

Exports of goods and services (% of GDP) in Germany•47, 47

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 63.8 70.0 85.6 75.0 77.4 86.4 83.0 75.1 86.9 86.6    

2009 63.9 63.9 69.4 63.1 60.1 67.3 69.9 59.3 69.9 74.1 73.4 69.2

2008 83.3 83.5 82.8 88.8 79.7 87.4 86.1 74.9 86.3 88.7 76.1 66.7

Agriculture•Agriculture is important for the country's food

security and also a provider of jobs. • It produces about DM84 billion worth of goods

annually and purchases goods for around DM52 billion

•Over 80 percent of Germany's land is used for agriculture and forestry

• It has undergone profound structural changes in the second half of the 20th century

Chief agriculture products• Milk, pork, beef, poultry,

cereals, potatoes, wheat, barley, cabbages, and sugar beets.

• Wine, fruits, and vegetables, and other horticultural products

• Cereals and sugar beets

Industrial Production Growth Rate• Industrial Production expanded 11.1 percent in November of

2010. • Measures changes in output for the sector of the economy,

includes manufacturing, mining, and utilities.

Trasportation

Air transport:•Registered carrier departures worldwide in was

reported at 1154472.00 in 2008.

Railway Transport:•The Railways; goods transported (million ton-km) in

Germany was reported at 91178.00 in 2008•Passengers carried (million passenger-km) was

reported at 76997.00 in 2008.

Bank

•The Bank capital to assets ratio (%) was reported at 4.50 in 2008

•The Bank liquid reserves to bank assets ratio (%) was reported at 2.31 in 2008

Communication, Computer and Information Technology • The Communications; computer; etc. (% of service exports; BoP)

was reported at 52.78% OF SERVICE EXPORTS in 2008. • The Information and communication technology expenditure ($)

in Germany was reported at 196808915540.85 in 2008.• Expenditures include Computer hardware; Computer software:

computer services, Data processing services, and communications services and wired and wireless communications equipment

Energy Resources• Germany is the world's fifth largest consumer of energy• Renewable energy sources, such as solar,

wind, biomass, hydroelectric, and geothermal energy

are used• Germany consumed energy from the following sources

▫Oil 34.6% ▫Natural gas 21.7% ▫Lignite 11.4% ▫Bituminous coal 11.1% ▫Nuclear power 11.0% ▫Hydro and wind power 1.5% ▫Others 9.0%

Fuel

• The Fuel exports (% of merchandise exports) was 2.57 in 2008

• The Fuel imports (% of merchandise imports) was 13.60 in 2008, according to the World Bank

Wind Power supplies 6.5% of Germany‘s Electricity Consumption

• Germany had a total of 21,164 wind turbines installed with an output of 25,777 MW

• The produced electrical energy from wind farm amounted to 37.5 TWh

• About 90,000 people in Germany were employed in the wind power sector (2009)

• The three leading manufacturers on the German market for wind turbines were Enercon, Vestas, and Repower Systems

• Investment in the wind energy in Germany was 2.65 billion €

Adjusted savings: consumption of fixed capital ($):• Consumption of fixed capital was reported at 510048534728.39 in

2008, according to the World Bank.• Consumption of fixed capital represents the replacement value of

capital used up in the process of production.

Age dependency ratio; young (% of working-age population):

• Reported at 20.65 in 2008.• Is the ratio of younger dependents--people younger than 15--to the

working-age population--those ages 15-64.

Life Expectancy at Birth :

• The Life expectancy at birth; total (years) was 80.09 in 2008

Literacy rate:•Youth literacy rate is the percentage of people ages

15-24 who can, with understanding, read and write a short, simple statement on their everyday life.

GERMAN INDUSTRY SECTOR: • Industries in Germany are the backbone of the economy in the

country.• 27.1% of gdp composition

• Employed 29.7% of the workforce.

• Most of the industries in the country are manufacturing industries and Heavy Engineering industries.

• The most important and prominent industrial region in Germany is Ruhr;

• (Majority of the iron and steel industries of the country are concentrated in Ruhr.)

• The other prominent industrial areas in the country are located at;• Bavaria, Dresden, Bremen and Hamburg.

Industries in Germany also deal with;

•Automobile engineering,•Ship building,•Electronic engineering,•Electrical engineering,•Plant machinery,•Aircraft manufacturing and other industries. 

In 2010 the ten largest listed companies on German stock market (DAX) were:

•Volkswagen, •Allianz, •E.ON, •Daimler, •Siemens, •Metro, •Deutsche Telekom, •Munich Re, •BASF, •BMW.

• Industrial sector will remain the main growth engine of the economy in 2011, adding 70,000 new jobs, acc DIHK

• (Deutscher Industrie- und Handelskammertag, DIHK) the German chamber of industry and commerce.

•Estimated growth of 5%, the industrial sector will grow twice as fast as the overall economy;

(DIHK President Hans Heinrich Driftmann.)

Few of German companies include:•Diversified industrials Robert Bosch, Thyssen Krupp, and MAN•Pharmaceuticals Bayer and Merck•Clothing and footwear Adidas and Puma•Banking and finance Commerzbank and Deutsche Bank•Automobile Mercedes Benz, BMW, Audi, Porsche, Volkswagen

etc.

•Germany was the birth place of the automobile,

•1876 the four-stroke engine was invented by Nikolaus August Otto

•1887 Karl Benz attached a couch to an internal combustion engine

•Now produces about 10 million cars per year.

•Employs about 1.26 million people. 

Automobile industry

• German companies such as Audi, Daimler, Mercedes, BMW

• Volkswagen and Porsche have factories producing millions of cars all over the world.

Some facts about them:• Mercedes was originally named after a client's daughter;• Volkswagen means 'people's car‘;• BMW stands for 'Bayerische Motoren Werke' – 'Bavarian

Motor Works was originally an aircraft manufacturer, as symbolized by their emblem, a rotating aeroplane propeller

•Manufactured 5.2 million vehicles in 2009, down 18percent from 2008,

•World’s fourth largest producer and largest exporter (3.4m)of automobiles in the world and the largest in Europe

•German-branded cars accounted for more than one-sixth of total global car productions (5,123,240 in 2009; 2nd largest in

the world)• Turnover in the industry amounted to over €55.4bn in 2009;(down by 28.7percent on 2008)• More labour intensive, with 316,300 people employed in the

industry in 2009

Manufacturing in 2009;

Six German companies dominate the automotive industry in thecountry:

•VW, Audi (owned by the Volkswagen Group), BMW, Daimler AG, Porsche and Opel

•Nearly six million vehicles are produced in Germany each year, and approximately 5.5m are produced overseas by German brands

•The Volkswagen Group is one of the three biggest automotive companies of the World (along with Toyota and General Motors)

•Germany has the largest share of passenger car production in Europe with over 29% market share

•France (18%), Spain (13%) and the United Kingdom (9%).

Automobile production in 2009•CARS – 5,123,240•BUS – 9,745•HEAVY TRUCKS – 158,226

Total manufacturing exports consists of 83.32%of the total exports of Germany.

India and GermanyEconomic overview…. .

Top 10 countries by GDP in 2009 Adjusted to purchasingpower (USD trillion)

Exports of goods and services (Billions of US Dollar)

  Imports of goods and services (Billions of US Dollars)

Business environment rankings

FDI inflow by Germany in India (million USD)

Prominent Indian employers in Germany

Some of leading German automotive companies in India

Opportunities for Indian companies

OPPURUNITY FOR GERMAN COMPANIES

DANKE……….