A Closer Look At Germany’s Economic State

One of the most powerful national economies in the world today is that of Germany. The main reasons why it is this way, according to history, apart from other very necessary fundamentals, are what brace it even when things go wrong elsewhere internationally: low inflationary tendencies coupled with stable pricing policies, easy manageable public debts, hence it is reliable to possible investors. 

Germany’s technical progress is another major contributor to its economic mightiness. Throughout its long history, this country has always been ahead of the rest in terms of scientific knowledge and technology, thus gaining a competitive edge over other companies globally, despite being an expensive place to do business at times.

Another aspect that has helped prop up the German economy is its social sector; high living standards, established educational standards, and good healthcare services form these three arms of the same coin, for example (Domain Incite). However, this comes at a cost: the higher the living standards, the more people who are old become a burden to the country’s economy (Buyukozturk et al.). Projections estimate that by 205, above 25% of Germany`s population will be over 65 years of age, a move that will strain the welfare system even further than it has already been subjected to since there would be a need for more money spent on elderly care, including providing better pensions, among others.

It is also worth noting that both adult education level (30–55) and general qualifications for workforce members play in favor of the country’s economy. As a result of relative competitiveness and solidarity in remuneration packages, as well as their availability compared to other countries across borders, there is always a flow of highly skilled professionals into this nation, hence driving economic growth through new industries and technologies.

Nonetheless, there are drawbacks behind these advantages, including over-reliance on exporting goods, which influences currency exchange rates such as EURUSD, according to analysts. Lest you forget one thing: weakest link syndrome also applies here. Therefore, it is crucial to promote domestic demand within it through innovation, just like other developed economies do for economic independence from other nations (Situmbeko et al., 2013).

However, the issues of climate change form part of the challenges currently faced by the German economy. Indeed, while Germany remains one of the pioneers in green power production, the transition to alternative sources needs huge investments, which go slower than they should.

The state of the economy’s condition as well as business activities is mirrored by the DAX index, an entity that includes Germany’s largest capitalization (Commerzbank AG). For this reason, investors and gamblers can take it into consideration while observing the absorbance rates on the Deutsche Börse stock exchange market. 

Present pandemics in the economy (the Corona crisis) have also had an effect on economic indicators, which can still be observed on this graphic chart.

This upward momentum not only marks a recovery from the 14700 support but is equally sustained by positive earnings reports from companies like Puma (FWB:PUMA) and Hermes (XETR:HMI). Furthermore, reduced yields in government bonds have triggered an inflow of funds into equities. In the general positive mood, first tests should be anticipated at 15500 resistance levels, with a possibility of breaching this point on continuous good news flow.

Daniel Odoh
Daniel Odoh

A technology writer and smartphone enthusiast with over 9 years of experience. With a deep understanding of the latest advancements in mobile technology, I deliver informative and engaging content on smartphone features, trends, and optimization. My expertise extends beyond smartphones to include software, hardware, and emerging technologies like AI and IoT, making me a versatile contributor to any tech-related publication.