Economy
Currency
The euro (1 EUR = 100 cents) is the legal tender for 19 of the Member States of the European Union:
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Go to the European Central Bank for more information.
Exchange rates
1 EUR = 1.12 USD (May 2019)
1 USD = 0.90 EUR (May 2019)
Economic Data
Year
Average Unemployment rate
Annual Inflation rate (HICP)
2002
8.7%
1.4%
2003
9.8%
1.0%
2004
10.5%
1.8%
2005
11.3%
1.9%
2006
10.3%
2007
2.3%
2008
7.5%
2.8%
2009
7.8%
0.2%
2010
7.1%
1.2%
2011
5.9%
2.5%
2012
5.5%
2.1%
2013
5.2%
1.5%
2014
5.0%
0.9%
2015
4.6%
0,3%
2016
4.1%
0,4%
2017
3.8%
1.70%
2018
3.2%
1.90%
Source: Eurostat
Note: Unemployment rates differ in the regions that were formerly divided into East and West Germany.
Please check the German Department of Labor for detailed information.
GDP Germany (billion EUR)
2132.2
2147.5
2195.7
2224.4
2313.9
2428.5
2473.8
2374.2
2495.0
2609.9
2666.4
2735.8
2915.7
3025.9
3144.0
3263.3
3338.2
Source: Federal Statistical Office Germany
U.S. Exports and Imports to Germany
As of 2016, after China, Canada, Mexico, and Japan, Germany is the fifth largest trading partner of the U.S.
U.S. trade in goods with Germany: 2000-2018
Note: All figures are in millions of U.S. Dollars on a nominal basis.
Exports to Germany
Imports from Germany
Balance
2000
29,448.4
58,512.9
̶ 29,064.5
2001
29,995.4
59,076.6
̶ 29,081.2
26,629.6
62,505.7
̶ 35,876.1
28,831.9
68,112.7
̶ 39,280.8
31,415.9
77,265.6
̶ 45,849.7
34,183.7
84,750.9
̶ 50,567.2
41,159.1
89,082.0
̶ 47,922.9
49,419.7
94,164.1
̶ 44,744.4
54,505.3
97,496.6
̶ 42,991.3
43,306.3
71,498.2
̶ 28,191.9
48,155.3
82,450.4
̶ 34,295.1
49,146.8
98,687.9
̶ 49,541.1
48,797.1
108,708.1
̶ 59,911.0
43,807.4
105,109.2
̶ 61,301.8
49,363.3
123,259.6
̶ 73,869.3
49,946.7
124,139.2
̶ 74,192.6
49,362.0
114,227.4
̶ 64,865.4
53,492.8
117,744.8
̶ 64,252.0
57,653.8
125,904.1
Source: U.S. Census Bureau
Main Exports and Imports by Commodity with Germany 2018
Commodity
Air- and Spacecraft (incl. parts)
USD 2.5 billion
USD 8.9 billion
Optical, Photo, Surgical Instruments
USD 10.6 billion
USD 6.7 billion
Electric Equipment
USD 8.8 billion
USD 5.5 billion
Pharmaceutical Products
USD 15.3 billion
USD 3.4 billion
Nuclear Boilers, Machinery (incl. parts)
USD 27.2 billion
USD 6.8 billion
Vehicles (incl. parts)
USD 25.4 billion
USD 7.2 billion
German Business Practices
Business Hours
Labor
Wages and Productivity
When compared internationally, wages in Germany are among the highest in the European Union and worldwide. The minimum wage in Germany is EUR 9.19 per hour as of January 2019. Additionally, German labor is known to be productive and skilled, as German quality is famous throughout the world.
Labor Law
Unions are powerful and large in Germany. Workers are protected by strong labor laws that provide them with many different rights. They are much more substantial than in the U.S. Here are some examples:
Ordinary dismissal of workers must be preceded by notice, which depends on the duration of the time the employee was with the company. It may vary from 1-7 months. The employee may also challenge the dismissal in court.
The Law of Parental Allowance (Gesetz zum Elterngeld und Elternzeit) grants a mother a total of 36 months leave, and father leave is also becoming common practice. Six weeks prior to the birth and eight weeks thereafter are on paid leave. The mother and the employer can agree on a parental leave (max. 36 months), after which the employer will provide her with the same job she had prior to the birth of the child.
Social Security and Health Care costs are equally split between the employee and the employer.
Average working hours are 37.5 hours/week and annual leave varies between 20 and 30 working days.
For additional information on labor in Germany please visit the Central Office of the Employment Agency.
Tax
If you are a foreign company looking to register for VAT in Germany, please contact the following institution:
Bundeszentralamt für Steuern An der Küppe 1 D-53225 Bonn phone: +49 (0) 228 406-0 fax: +49 (0) 228 406-2661 http://www.bzst.bund.de eMail: poststelle@bff.bund.de
Depending on where you will carry out business in Germany, you will need to contact that local Finance office (Finanzamt). For all office listings please look at the following website: http://www.finanzamt.de/
If you are already registered for VAT in Germany and wish to reclaim VAT, please send an email to vatrefund@bff.bund.de
Legal
The Legal Guide to Germany The project “The Legal Guide to Germany" is the expat's concise guide to overcoming officialdom in Germany: http://www.lg2g.info
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