Why is the German economy so strong? Seven reasons

1. Important role of industry

In Germany, the share of industry in gross value added is the highest among all G7 countries at 26.6 percent. The strongest sectors are automotive engineering, electrical engineering, mechanical engineering and chemicals.

2. High export quota

Germany is one of the three largest exporting nations alongside China and the USA. In 2022, Germany exported goods worth 1,576 billion euros. The export quota was 50.3 percent.

3. Most open economy

Measured by the importance of foreign trade for gross domestic product (GDP), Germany is the most open economy of the G7 countries. The foreign trade ratio is 98.6 percent – that is the sum of imports and exports in relation to GDP.

4. High-performance medium-sized businesses

The heart of the German economy beats in the small and medium-sized enterprises. These are companies with an annual turnover of less than 50 million euros and fewer than 500 employees. 99.6 percent of German companies are small and medium-sized enterprises. Over 1,000 of them are so-called “hidden champions”, world market leaders who are often little known to the public.

5. Best exhibition venue

Germany is the world's number one venue for international trade fairs. Two thirds of the world's most important industry events take place in Germany. Ten million visitors come to around 150 international trade fairs and exhibitions every year.

6. Strong economic centres

The most important economic centers in Germany are the metropolitan regions of Munich (high-tech), Stuttgart (automotive manufacturing), Rhine-Neckar (chemicals, IT), Frankfurt am Main (finance) and Hamburg (port, aircraft construction, media). Berlin/Brandenburg is the strongest startup region.