Germany Political & Economic Risk Assessment

Resilient domestic demand will save the day

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD3677.439bn (World ranking 4, World Bank 2017)
Population 82.7mn (World ranking 16, World Bank 2017)
Form of state Federal Republic
Head of government Angela MERKEL (Chancellor)
Next elections 2021, legislative
  • Healthy public finances
  • Strong industrial base
  • Low structural unemployment
  • Well-diversified export sector (products and trade partners)
  • Low systemic political risk
  • Aging population
  • Skilled-labor shortage
  • Dependence on exports
  • Dominance of the automobile sector
  • Subdued medium-term growth prospects due to weak investment

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 9%
1
10% China
France 8%
2
9% Netherlands
United Kingdom 7%
3
7% France
China 6%
5
5% Italy

Trade structure by product

(% of total)

Exports Rank Imports
Road vehicles 18%
1
10% Road vehicles
Electrical machinery, apparatus and appliances, n.e.s. 8%
2
8% Electrical machinery, apparatus and appliances, n.e.s.
Other industrial machinery and parts 7%
3
5% Medicinal and pharmaceutical products
Medicinal and pharmaceutical products 6%
4
4% Petroleum, petroleum products and related materials
Other transport equipment 4%
5
4% Other industrial machinery and parts
The payment behavior of domestic firms is good and the courts are efficient in delivering timely decisions however, professional pre-legal negotiation efforts remain the most efficient means of collecting debt.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

The purpose of insolvency proceedings in Germany has long been to realize the debtor's assets to repay the creditor's debt. As a result, liquidation has in practice remained the default procedure and the system provides no genuine support to unsecured creditors when it comes to collecting debt from insolvent debtors.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Gregor Eder

Country risk analyst

gregor.eder@allianz.com

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