Doing Business in Germany
The German economy is the world's fourth largest and accounts for over a fifth of the GDP of the European Union Germany is the United States the largest European trading partner and sixth largest market for US exports economy social German market largely follows free market principles, but with a considerable degree of government regulation and social protection of large programs.
Germany is the largest consumer market in the European Union with a population of 80 6000000 In addition, the importance of the German market goes far beyond its borders A huge volume of trade is conducted in Germany to some of biggest trade events in the world, such as Medica, Hanover fair, CeBIT, Automechanika, and tourism Show ITB trade volume, the number of consumers in Germany and its location in the center of a 28-member European Union are a cornerstone around which many US companies looking to build their European expansion strategy and worldwide.
The government plans 1 7 percent growth for 2016, over 1, 3 percent on average of the last ten years, which would mean that the German economy continues to grow at or above what many analysts consider its long-term potential, although weaker growth in emerging economies have begun to weigh on German exports in 2015 demand started to move from external sources to private households, which should remain the main driving force for growth short term despite budgetary surpluses and strong corporate profitability, the government and enterprises have taken little advantage of low interest rates to stimulate investment.
The labor market has remained resilient during the economic and financial crisis and was stronger in 2015 than ever employment in Germany increased for the tenth consecutive year and reached a record $ 43 million all-time in 2015, an increase of 330 000 or 0 8 per cent 2014 April 2016, are registered as employed approximately 43 433 people, 733 more people than 42700 registered in April 2015.
Unemployment has fallen over 40 percent since its peak in 2005, and reached the lowest level since German reunification in 1990. In 2015, less than 2 8 million people were registered as unemployed, and the rate of unemployment totaled 6 4 percent, the official national data, or 4 by 6 percent, according to statistics internationally comparable International Organization of the ILO Work in the European Union, Germany the lowest youth unemployment rate 7 0 percent in April 2016; average of the European Union 19 percent.
Demographic changes and the resulting labor shortages; regulation of government of the labor market; and rising energy prices due to elimination Energiewende current nuclear power are considered factors that might hinder competitiveness slowdown in activity in emerging markets and renewed weakness in the area euro could weaken exports contain investments and affect consumer confidence, all of which could result in lower growth.
Germany has few formal barriers to trade in the United States or the acceptance of investment in Germany EU Common Agricultural Policy and the German restrictions on agricultural biotechnology products are obstacles for certain American products Germany urged the European Commission to reduce regulatory burdens and promote innovation to enhance EU member States competitiveness are not directly discriminatory, government regulation because of its complexity can provide a degree of protection to local suppliers or safety standards established environmental, not inherently discriminatory but sometimes zealously applied, can complicate market access for US products US companies wishing to export to Germany should ensure that they know the standards for their products and get tests timely and German certification standards are particularly relevant for US exporters, as European standards are often based on existing German standards.
For US companies, the German market - the largest in the EU - continues to be attractive in many areas and remains an important part of any comprehensive export strategy in Europe While US investors must reckon with a cost relatively more to do business in Germany, they can rely on high levels of productivity, a highly skilled workforce, engineering quality, first-class infrastructure and a location in the center of Europe.
Participants of the most successful market are those that offer innovative products offering high quality and modern German style are sensitive to innovative American high-tech products such as computers, software, electronics, health care and medical devices, synthetic materials, and automotive technology Germany has one of the highest Internet access rates in the EU and multimedia, high-tech zones and services offer great potential Some agricultural products also represent good export prospects for US producers in many cases, the price is not necessarily the determining factor for German buyers, but quality.
The German market is decentralized and diverse, with different interests and tastes of a German state to another successful market strategies take into account regional differences in the context of a strong presence in the domestic market experienced representation is a major asset for any market strategy, given that the primary competitors for most US goods are national companies with US companies established presences can overcome this tough competition by offering products and high quality services to competitive price and support locally based aftermarket for investors, Germany's relatively high marginal tax rates and complex tax laws can be an obstacle, even if deductions, allowances and write-offs help move effective tax rates at levels Compet yews internationally.
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