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Economy of Germany
Germany is the largest national economy in Europe, the fourthlargest by nominal GDP in the world, and fifth by GDP (PPP). Since
the age of industrialisation and beyond, the country has been a driver,
innovator, and beneficiary of an ever more globalised economy.
Germany's economic policy is based on the concept of the social
market economy. The country is a founding member of the European
Union and the Eurozone. Germany is the third largest exporter in the
world with $1.516 trillion exported in 2012. Exports account for more
than one-third of national output. In 2013, Germany recorded the
highest trade surplus in the world worth $270 billion, making it
the biggest capital exporter globally.
Germany is the largest producer of lignite in the world. Germany is also rich in
timber, iron ore, potash, salt, uranium, nickel, copper and natural gas. Energy
in Germany is sourced predominantly by fossil fuels, followed by nuclear
power, and by renewable energylike biomass (wood and biofuels), wind, hydro
and solar.
Germany is the world's top location for trade fairs. Around two
thirds of the world's leading trade fairs take place in Germany. The
largest annual international trade fairs and congresses are held in
several German cities such as Hanover, Munich, Frankfurtand Berlin.
The service sector contributes around 70% of the total GDP,
industry 29.1%, and agriculture 0.9%. Most of the country's
products are in engineering, especially in automobiles,
machinery, metals, and chemical goods. Germany is the leading
producer of wind turbines and solar power technology in the
world. Combination of service-oriented manufacturing, R&D
spending, links between industry and academia, international
cooperation and the Mittelstand contribute to the overall
competitiveness of the economy of Germany.
Of the world's 500 largest stock market listed companies measured by revenue,
the Fortune Global 500, 37 are headquartered in Germany. In 2012 the ten largest
were Volkswagen, Allianz, E.ON,Daimler, Siemens, Metro, Deutsche Telekom, Munich
Re, BASF, and BMW. Other large German companies include: Robert
Bosch, ThyssenKrupp, Continental AG, MAN and Trumpf (diversified
industrials); KUKA (robotics); Bayer and Merck(pharmaceuticals); Adidas and Puma (c
lothing and footwear);Commerzbank and Deutsche Bank (banking and
finance);Deutsche Bahn (rail transport); Aldi, Lidl, and Edeka (retail); SAP (computer
software); Infineon (semiconductors); Henkel and Miele(household and personal
consumer products); Deutsche Post(logistics); Bertelsmann (mass media); and Hugo
Boss (luxury goods). Well-known global brands are Mercedes
Benz, BMW,Adidas, Audi, Porsche, Volkswagen, Bayer, BASF, Bosch, Siemens,Luftha
nsa, SAP and Nivea
Germany is recognised for its specialised small and medium enterprises.
Around 1,000 of these companies are global market leaders in their
segment and are labelled hidden champions.
From 1991 to 2010, 40,301 mergers and acquisitions with an involvement of
German firms with a total known value of 2,422 bil. EUR have been
announced.[65] The largest transactions[66] since 1991 are: the acquisition
of Mannesmann by Vodafone for 204.8 bil. EUR in 1999, the merger of DaimlerBenz withChrysler to form DaimlerChrysler in 1998 valued at 36.3 bil. EUR.
The list includes the largest German companies by revenue in 2011:
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