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Germany`s economic figures
- Federal state since 1949, 16 federal states
- Reunited since 3 October 1990
- Area:
357,114 km2
- Population:
81 million
- Working pop:
42.6 million
- Largest cities:
Business Relations & Differences in Business Culture - - PowerPoint PPT Presentation
Business Relations & Differences in Business Culture - - PowerPoint PPT Presentation
German-Estonian Business Relations & Differences in Business Culture www.ahk-balt.org Germany`s economic figures Federal state since 1949, 16 federal states Reunited since 3 October 1990 Area: 357,114 km2
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Germany`s economic figures
- GDP:
EUR 2,737 billion
- GDP per Capita:
EUR 33,346
- GDP by Sector:
Services (incl. Trade) 70.6 %, Industry 28.6 %, Agriculture 0.8%
- GDP Growth:
1.7 %
- Inflation Rate:
0.8%
- Unemployment:
6.8 % (2,95 million)
- Average Salary:
EUR 2,600
- Exports of Goods:
EUR 1,093 billion
- Import of Goods:
EUR 895 billion
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Germany`s economic figures
Economic Structure
- Number of Companies:
3.66 million
- Percentage of SME:
98.45 %
- Total Turnover all Companies:
EUR 5,800 billion
- Total SME Turnover:
36.5%
- Total Employees:
27 million
- Number of Employees in SME:
80 %
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Foreign Trade Volume Germany – Baltic States
Germany`s Foreign Trade with the BalticStates 2013 (in Mio. EUR)
- Germ. Exports
- Germ. Imports
Total Changes to Previous Year (in %)
Estonia 1 443 560 2 003 +0,3 Latvia 1 466 742 2 208 +4,5 Lithuania 2 752 1 761 4 513 +8,0
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Foreign Trade Volume Germany – Baltic States
in Mio. EUR 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Change since 2004
Exports 3 106 3 486 4 740 5 768 5 315 3 066 3 989 5 026 5 439 5 661 +82,3% Imports 1 578 1 500 1 700 2 132 2 076 1 831 2 522 2 896 2 994 3 063 +94,1% Saldo 1 528 1 986 3 740 3 636 3 239 1 235 1 467 2 130 2 445 2 598
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Germany as a business location offers...
high labour productivity a first-class infrastructure a high level of innovation attractive pro-business policies top quality of life
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High labour productivity: high skill levels.
A highly skilled workforce: essential for top-tier productivity – with and without university education 400 universities and universities of applied sciences, including some of the world’s top universities for engineering subjects Dual vocational training system for skilled trades: combination of theoretical and practical training Close cooperation between vocational schools and business companies - minimizes hiring and on-the-job training costs high labour productivity
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High labour productivity: opinions from the business world
Germany’s level of training and process and product quality make it Europe’s No. 1 investment location for US companies (US Chamber of Commerce) 82% of foreign-company managers surveyed rate German workers’ skill levels as attractive (Ernst & Young, Germany as a Business Location) Despite comparatively high wage costs, our German locations are among the most productive worldwide thanks to the workers’ outstanding skill levels and motivation.” (Rolls-Royce)
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Privileged geographical location
At the heart of the EU, the world’s largest single market: a population of 500 million, GDP: 12,506 billion EUR Germany is the economic centre of this market, accounting for 17% of the EU’s total population and 20% of its GDP Close-knit network of road, rail and air connections to all neighbouring countries
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First-class infrastructure
23 international airports, 22 seaports, 250 inland ports 231,000 km of roads (12,600 km interstate motorways “Autobahn”) 40,953 km rail network 8,127 km of inland waterways robust and excellently maintained German logistics companies are world market leaders
- excellent transport services
Comprehensive, fast and reliable telecommunications infrastructure
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Attractive pro-business policies
Corporate taxation reduced by nearly 10% in recent years Flexible labour laws as result of comprehensive reforms; wide range of working time models possible Autonomous wage bargaining in cooperation with trade unions helps maintain social peace (Germany loses comparatively few days to strikes on European average) Flexibility and planning certainty for employers job security for workers (increase in unemployment during financial crisis: 3% - worldwide record low)
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Attractive pro-business policies
Germany’s national and regional governments offer a wide range of measures to support investment:
Source: GTAI
1 New federal states only
Incentives Operational Incentives Package R&D Incentives Labor-Related Incentives Training Support Recruitment Grants Silent / Direct Partnership Loans Wage Subsidies State Investment Grant Cash Incentives Interest-Reduced Loans Public Guarantees KfW Loans (National Level) Investment Allowance1 State Development Bank Loans Combined State/ Federal Investment Incentives Package
+
13
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Top quality of life
Important factor in attracting and retaining highly skilled employees Surveyed foreign managers rate quality of life as Germany’s greatest strength: 87% in agreement (Ernst & Young) High-quality, dependable public infrastructure and utilities Wide range of leisure activities available thanks to flourishing community life: e.g. 26,000 football clubs and 646 golf courses Attractive recreational facilities: low mountain ranges, Alps, 2,389 km of coastline and 125 nature reserves and national parks Lively cultural scene: 80 opera houses, 550 festivals and 5,600 museums
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How foreign investors view Germany’s future 54% expect Germany to become even more attractive to investors over the next three years They foresee its becoming increasingly attractive for innovation activities, companies and highly skilled talent How investors see Germany in the year 2020:
Global leadership in environmental technology Centre for research and development
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About Germans Open minded and enterprising business community. Trustworthy and reliable. Structured and innovative. Conservative and always on the look out to eradicate bottlenecks. Concrete in discussions with reliable partners only. Focused on end results. No room for loose talks.
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Developing business relations with Germans Firstly, Germans need to be confident that the product/service/ideas offered will sustain the German quality standards/expectations. The are looking for a reliable partner/company/environment to establish business. Business cannot be established after 1st meeting/visit in Germany. One has to be patient and follow up regularly to achieve desired results. Germans scrutinize any new idea/concept very carefully and might take a while before they are convinced.
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Differences in Business Culture – Good to know How old is the society? Scandinavian? Cold? „Kalli kalli musi musi“ Patriotism? Singing? Where are similarities? Law? Food? Clothes? Nature? Family?
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“Germans vs Estonians” Like innovation? Like security? Are fast decision makers? Think in hierarchies? Like control? Dislike rules and regulations?
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Some Business Basics for Germany Where are you going – how to dress? Meeting, Evening… Timing? Using your mobile devices? Small talk… First names? Business cards or electronic features? Style of correspondence?
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There are no rights and wrongs But there are differences Just be aware of them
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