Germany Economy

Working abroad sounds like an adventure to many people. However, job search in Germany requires more than just the obvious Germany CV writing and translation, it requires thorough preparation. You will face problems that probably did not even come to your mind when you decided to get an overseas employment.

Do not take too lightly the influence a job in Germany can have on the effect of your adventure! For instance, you will experience the different immigration rules and practices, strange job application procedures, unfamiliar job candidate selection criteria and out of the ordinary management culture.

art_warning Germany EconomyMost visits to Germany are trouble-free but you should be aware of the global risk of indiscriminate international terrorist attacks, which could be against civilian targets, including places frequented by foreigners. The German authorities have carried out a number of arrests as a result of investigations into terrorist networks.

Germany economy - overview: Germany’s affluent and technologically powerful economy - and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth led to a considerable fall in unemployment to about 8% near the end of 2007. Among the most important reasons for Germany’s high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates.

The modernization and integration of the eastern Germany economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. The former government of Chancellor Gerhard Schroeder launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela Merkel has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany’s aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006-07 and a 3% rise in the value-added tax pushed Germany’s budget deficit well below the EU's 3% debt limit.

Domestic demand is becoming a more significant driver of Germany's economic expansion. Stimulus and stabilization efforts, and tax cuts increased Germany's budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduce the deficit to 1.7% in 2011, below the EU's 3% limit. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016.

Following the March 2011 Fukushima nuclear disaster, Germany announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its energy and 46% of its base-load electrical production.

Labor force - by occupation: industry 33.4%, agriculture 2.8%, services 63.8% (1999)

Unemployment rate:  5.7% (2011), 10.8% (2007 est.), 9.8% (2002 est.)

Natural resources: iron ore, coal, potash, timber, lignite, uranium, copper, natural gas, salt, nickel, arable land

Industries: among the world's largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages; shipbuilding; textiles

euro_banknotes Germany EconomyCurrency: Euro (EUR; symbol €) = 100 cents. Notes are in denominations of €500, 200, 100, 50, 20, 10 and 5. Coins are in denominations of €2 and 1, and 50, 20, 10, 5, 2 and 1 cents.

Credit/Debit Cards and ATMs: All major credit cards are accepted, but it is advisable to carry cash as well.

Traveler's Cheques: Generally provide the best rate of exchange. To avoid additional exchange rate charges, travelers are advised to take traveler’s cheques in Euros, Pounds Sterling or US Dollars. Visitors are advised to have their traveler’s cheques exchanged at bureaux de change as banks often refuse to change them and they are not accepted as payment in stores.

Exchange rates: Euros (EUR) per US dollar - 0.7107 (2011 est.), 0.755 (2010 est.), 0.7198 (2009 est.), 0.6827 (2008 est.), 0.7345 (2007 est.), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003) - 1.06 (2002), 1.12 (2001), 1.09 (2000), 0.94 (1999), 1.76 (1998)

Inflation rate (consumer prices): 2.3% (2007 est.), 2.2% (2011 est.)

Other Germany Economy Info

We hope that your Germany job search has been successful and you will get Germany visa too. So, if your Germany cover letter and Germany CV are ready, you may distribute them to your future employers and start preparing for a Germany job interview.

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