Germany

A key force in the European Union, Germany plays a critical role in the vitality and development of the EURO zone economy. The past decade has seen the powerhouse undergo a crisis of confidence, struggling with high unemployment, decreasing productivity, rising labor costs and high taxation.

Recent reforms however, are finally resulting in an upswing marked by increased productivity and the highest level of business confidence in 15 years.

Slumps and booms have long been a part of German economic history – from the hyper-inflation of the 1920s and 30s, to the phenomenal growth of the “wirtschaftswunder” during the 1950s. Germany has also survived political and geographical divide somehow struggling through a torturous reunification process. Germany’s economy has stumbled and reemerged many times over the past century but its key industries of engineering and financial services have proved a solid foundation throughout the decades. But with increasing competition from lower cost countries, and increasing demand for cheaper, more fuel-efficient cars, how long can Germany’s current optimism last?