Skip navigation


Current DateTime: 02:26:35 16 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 02:26:35 16 Nov 2009
LinksList Documentid: 33793611
  • How Much Do You Know About Green?

      Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 02:26:35 16 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Back to Going Global Main Page
Text Size
Oct.23
4:24 PM ET
Tuesday, 23 Oct 2007
International Investing: Germany

Country Overview: Germany's $2 trillion economy emerged from a long period of stagnation last year to post a 2.2% growth rate, cutting unemployment to about 7%. The last two decades have been dominated by the modernization and integration of the economy of the former East Germany, a costly, long-term process.

Unemployment and an aging population have pushed social welfare outlays to a level exceeding contributions.

The current government of Chancellor Angela Merkel has initiated reforms that include the gradual raising of the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany hopes that corporate restructuring and improving capital markets will help it meet the long-term challenges of integrating Europe.

What to Watch: Porsche, BMW, Daimler and Volkswagen -- what does the future hold for the German car sector? Asian competition, the push for environmentally friendly vehicles, high oil prices and the ever strengthening euro create a rather difficult mix.

But, the hottest question right now: is Porsche planning to buy much bigger German car maker Volkswagen?

Right now Porsche holds around 31 percent in VW shares, but it is believed the company will increase that holding to over 51 percent in the near future.

Porsche says it is indeed planning to get involved on a strategic level but has no plans to launch a full takeover. Still, the European Commission’s plans to cut the CO2 fleet emission limit to around 120gr per KM makes for an interesting twist to the story, as it would signal an end to Porsches' independent survival.

Determined to stay in business, Porsche is ready for the challenge, warning it would even go as far as to sue the European Commission over the emission limits.

Porsche now lobbies for the EU to either give it a 'special status' with a special 'Porsche emission limit' or to increase the overall emission target.

However, should all fail, before going to court, Porsche could decide to launch a full VW takeover offer after all.

By doing that, it could hide its own CO2 emission under VW's more fuel-efficient fleet.

  Germany
By The Numbers
20002006
Population82.2 million82.4 million
Economy
GNI, Atlas method (current US$)1.5 trillion2.3 trillion
GNI per capita, Atlas method (current US$)24,460.036,550.0
GDP (current US$)1.3 trillion2.2 trillion
GDP growth (annual %)4.01.2
Inflation, GDP deflator (annual%)1.41.9
Agriculture, value added (% of GDP)2.82.2
Industry, value added (% of GDP)22.920.9
Services, etc., value added (% of GDP)74.376.9
Exports of goods and services (% of GDP)28.626.1
Imports of goods and services (% of GDP)27.727.1
Gross capital formation (% of GDP)20.520.2
Revenue, excluding grants (% of GDP)42.943.1
Cash surplus/deficit (% of GDP)-1.7-2.8
States and Markets
Time required to start a business (days)N/A8.0
Market capitalization of listed companies (% of GDP)108.980.4
Military expenditure (% of GDP)2.52.5
Fixed line and mobile phone subscribers (per 1,000 people)1,070.41,376.0
Internet users (per 1,000 people)143.6429.6
Roads, paved (% of total roads)100.0100.0
High-technology exports (% of manufactured exports)23.820.0
Global Links
Merchandise trade (% of GDP)50.245.9
Net barter terms of trade (2000 = 100)100.0106.2
Foreign direct investment, net inflows (BoP, current US$)42.4 billion70.7 billion
Workers' remittances and compensation of employees, received (US$)8.6 billion12.6 billion
Source: World Development Indicators database, April 2007


Tools:
PrintEmailAdd This share icon
Next Post
  • digg share

CNBC HIGHLIGHTS

  • CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
  • Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
  • De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
  • Why are the Chinese concerned about the progress of U.S. health care legislation?
  • Snoop Dogg
  • CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
ADD COMMENTS
Remaining characters


Current DateTime: 01:12:16 16 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:28:53 16 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:49:44 16 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:42:55 16 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters