federal corporate tax rate is 15.8 percent (15 percent plus a 5.5 perÂ-cent solidarity tax), but trade taxes raise the effective top rate to roughly 33 percent. Other taxes include a value-added tax (VAT) and a capital gains tax. The overall tax burden equals 37 percent of GDP. Government spending is equivalent to 47.5 percent of GDP, and it has been widening, with public debt reaching 84 percent of GDP.
Imports and exports; One of the strongest demand for German's commodities is automobiles. In 2009, Germany produced 5.2 million vehicles, and was the world's fourth largest producer and largest exporter of automobiles. Germany automobile companies also dominate 90 percent of the top tier automobile market, which boasted brands such as Mercedes-Benz and Porsche.
Total value of exports: US$1.337 trillion
Primary exports - commodities: machinery, vehicles, chemicals, metals, manufactures, foodstuffs, textiles
Total value of imports: US$1.12 trillion
Primary imports - commodities: machinery, vehicles, chemicals, foodstuffs, textiles.
Balance of trade; Germany reported a trade surplus equivalent to 17.9 Billion EUR in June of 2012. Historically, from 1971 until 2012, Germany Balance of Trade averaged 5.6 Billion EUR reaching an all time high of 20.1 Billion EUR in June of 2008 and a record low of -0.5 Billion EUR in January of 1981. German economy is heavily export-oriented (the world's biggest exporter), with exports accounting for more than one-third of national output. Its principal exports are: motor vehicles, machinery, chemical products, electrical devices and telecommunications technology. German's principal imports are motor vehicles, chemical products, machinery, oil and gas and computers. European Union makes 60 percent of the total trade. Other major partners are: U.S. China and Russia.
Germany Balance of Trade
Availability of skilled labor; It benefits from a large pool of talented work force that has enabled Germany to dominate the vehicles, machinery, chemicals and household equipment vertical across the globe. It is this strong and productive work force that enabled Germany to face recession with a resilient face
Economic value; Struggling to get away from the severe economic slowdown of the past three years, the British economy continues to underperform, with an average annual growth of less than 1 percent over the past five years. The dramatic state expansion that had taken place in reaction to the financial turmoil has slowed. Significant reforms are still needed to place the economy on a solid path of recovery, with prospects complicated further by the ongoing European sovereign debt crisis. Restoring the soundness of public finances remains the most critical issue and will require a sustained commitment to downsizing government spending. The budget deficit has been over 7 percent of GDP in recent years, and public debt has risen to over 70 percent of total domestic output.
The top income tax rate is 50 percent, and the top corporate tax rate has been reduced to 26 percent. Other taxes include a value-added tax (VAT) and an environmental tax. The overall tax burden amounts to 34.3 percent of total domestic income. Government spending has risen to a level equivalent to 51.2 percent of GDP. The budget has a deficit of over 7 percent of GDP, and public debt has climbed to 75.5 percent of total domestic output.
Imports and exports; Since the beginning of 2011,
