German Economy

     German economy is the fifth largest economy in the world and Europe's largest exporter of machinery, vehicles, chemicals and household equipment and benefits from skilled labor force. Demographic, low fertility rate and declining net immigration are  challanging for continue economy growth, and increasing pressure on the countries social welfare system. Reforms launched by the government helped to strong growth in 2006-2007, whereas 2008-2009 German had to face deepest recession since World War 2 and the unemployement increased to 6.0% in 2011.GDP contracted 5.1% in 2009 but  grew by 3.6% in 2010 and 2.7 in 2011.

     The recovery caused primarily by rebounding manufacturing orders and exports outside the Euro Zone. Stimulus and stabilization efforts initiated in 2008-2009 and tax cuts increased Germany's budget deficit to 3.1% in 2010 but reduced to 1.7% in 2011 due to slower spending and higher tax revenues. In 2011, due to Fukushima nuclear disaster, Chancellor Angela Merkel announced 8 of country's 17 nuclear reactors shut down and remaining would be closed by 2022. Before German relied on nuclear power for 23% of its energy and 46% of its base load electoral production. Now German is hoping to replace nuclear power with renewable energy.