The fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force.
Ø Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth.
Ø Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.
Ø Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth and falling unemployment.
Ø These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession
- the deepest since World War II - and its decrease to 5.3% in 2013