GDP Per Capita
The GDP per capita of Germany is $38400. The GDP per capita is a measure of how much one person produces on average in a year, so a person in Germany produces $38400 worth of goods and/or services in a year on average. This is a bit lower than the U.S.'s $49000, but Germany is 27th worldwide, so it isn't poor by all means 27th worldwide, so it isn't poor by all means. From 2010 onward, Germany's GDP per capita has been growing, and Germany has been experiencing an economic expansion.
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source: tradingeconomics.com |
Unemployment Rate
source: tradingeconomics.com |
The unemployment rate shows how many people are there that they can realistically work and aren't in school, prison, college, hospital, etc, but don't have a job and are currently searching for one. Germany's current unemployment rate is 4.7%, which is lower than the U.S.'s 5.5%. Germany was at 5% in 2014, so it has decreased ever so slightly. A decrease in the unemployment rate suggests that GDP is rising and the economy is expanding because more people are working, so more people can make money to spend, which boosts consumer spending. It also means that businesses get more workers, so they can be more productive with making goods and providing services.
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Percentage of Population Below the Poverty LineThe percentage of population below the poverty line is just that, how many people are living below the poverty line, or in even simpler terms, how many people are poor. Germany's poverty rate is 15.5%, which is slightly higher than the U.S's 15.1%. A higher poverty rate suggests that the economy is contracting, because during a contraction income levels can drop to levels below the poverty line.
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Balance of TradeA trade surplus is when a country makes more money by selling goods and services to other countries than losing by spending for goods and services from other countries. Likewise, a trade deficit is when a country spends more for other's goods than it sells. Germany regularly has trade surpluses, with its most recent one being about $25 billion. A trade surplus boosts GDP because it means that the country is exporting enough that it cancels out how much it loses in terms of imports. On the other hand, a trade deficit boosts GDP because it means its losing too much from imports and not making it back up through the exports.
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Natural ResourcesGermany doesn't have many natural resources, so it usually imports resources. Some of the resources that Germany has are bituminous coal, brown coal, and certain minerals. These natural resources are used to manufacture goods, which can then be exported to other countries or sold within the country. All in all, it boosts German's GDP.
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Economic Sectors |
Future Trends |
Germany's main economic sectors are in manufacturing, particularly mechanical engineering, the supplier industry, and nano/biotechnology. The U.S.'s main economic sectors are services, mainly Information, retail, scientific, technical and professional services, which account for about two-thirds of its GDP. The economic sectors contribute to GDP by spending and investing on many different goods and services.
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I predict that Germany's economy will continue to grow in the long-term because our economies are tending towards globalization and Germany's trade surpluses suggest that it'll do well. However, in the next few years I predict that the GDP per capita will drop mainly because it seems like Germany has hit its peak, which can be seen in the graph next to GDP per capita.
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