Germany

Breanna Johanson

Overall score: 73.8 World Rank: 16

Germany Facts/United States

-Population: 80.62million/318.9million

-GDP: $46,268thousand/ $16.77 trillion

-GDP Growth: 0.1%/ 2.2%

-GDP per Capita: $48,368/ $53,041

Unemployment: 4.7%

Inflation: 1.6%/1.62%

Foreign Direct Investment: $909 billion/ $187.5 billion

The Source of Economic Process

Legal System

The government transparency is high in Germany, and anticorruption measures are forced on numerous industries like the auto industry, public contracting, etc. Property that is owned by foreigners is completely protected by German Law.

Competitive Market

Germany has a 1.0 percent average tariff rate. Germany is always open to external trade and open market. They apply this rule to foreign and domestic investments. Their competitive financial market is still strong and still developing.

Limits on Government Regulation

Germany's government takes about 44.7 percent tax of the gross domestic product, and the public's debt is equal to about 75 percent of domestic output. Germany's top individual income tax rate is about 47.5 percent.

An Efficient Capital Market

Germany regulations support forming and operating businesses. There are many ways to finance a business in Germany, people within Germany as well as foreigners can use the private and public banks. Germany's money policy is stable and encourages business.

Monetary Stability

Germany has a well balanced budget while other European countries are in a big crisis. The government has held firm to policies to its budget and keeps its spending under control, and works to pay off its deficit.

Low Tax Rates

Germany does not have low tax rates. The overall tax burden equals 37.6 percent of domestic output. German taxes include a value-added tax and a capital gains tax.

Free Trade

A non-tariff barrier exist, and Germany is relatively open to external trade. The traditional three-tiered system of private, public, and cooperative banks is intact.