GERMANY

A record economic rebound looms ahead, but mind the restart challenges

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD3806bn (World ranking 4, World Bank 2020)
Population 83.2mn (World ranking 19, World Bank 2020)
Form of state Federal Republic
Head of government Angela MERKEL (Chancellor)
Next elections 2021, federal and legislative 
  • Solid 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, 2020)

Exports Rank Imports
United States 8.6%
1
11.4% China
China 8.0%
2
7.7% Netherlands
France 7.5%
3
6.7% United States of America
Netherlands 6.4%
4
5.7% Poland
United Kingdom 5.5%
5
5.5% France

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Road vehicles 14.7%
1
10.0% Road vehicles
Electrical machinery, apparatus and appliances, n.e.s. 8.6%
2
8.3% Electrical machinery, apparatus and appliances, n.e.s.
Other industrial machinery and parts 7.5%
3
5.7% Medicinal and pharmaceutical products
Medicinal and pharmaceutical products 7.2%
4
4.2% Other industrial machinery and parts
Specialised machinery 4.3%
5
3.9% Office machines and automatic data processing machines
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

  • 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.

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