Germany’s GDP is expected to be approximately 4.2 trillion dollars at the time of writing this article. This sum of money is difficult to fathom.
However, it is still less than the combined market capitalization of the world’s two most valuable brands, Apple and Saudi Aramco, which are valued at $5 trillion.
With a GDP of 4.2 trillion, Germany is the world’s fourth-richest country. Of course, this statistic does not indicate individual wealth, but rather the worth of all finished goods and services produced inside Germany during a given period.
China and the United States have a larger economy and a population that is four times that of the United States. So, how did Germany become Europe’s wealthiest country?
Germany is an economic powerhouse that resides in the heart of Europe, is a founding member of the European Union, and is the continent’s second-most populous country, trailing only Russia, which sits on two continents.
Only the Dutch work fewer hours among the 34 members of the OECD, which includes 38 countries from around the world; German children spend 25% less time in the classroom than their Italian counterparts; and despite the fact that there are six more productive economies in Europe alone, Germany continues to be the strongest.
So, basically in this article, we are going to talk in detail about How is Germany the richest country in Europe in detail. Kindly please read this article till the end in order to get some really valuable information from it.
Higher Production is the Key
On the continent, Germany had the greatest trade surplus in the world in 2016, totaling over $300 billion. With about two trillion dollars in products and services exported in 2019,
Germany became the world’s greatest capital exporter. In all, about 3.5 million automobiles were exported in 2019, accounting for around 20% of all exported cars around the globe.
The automotive industry employs around 800,000 people in Germany and accounts for around 10% of the total national GDP. Brands like BMW, Mercedes-Benz, and Audi are well-known throughout the world for their quality and value.
Volkswagen is Germany’s largest company in 2019. With a market capitalization of roughly 105 billion dollars, it is the 133rd most valuable brand.
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What amazes me is that a corporation of this caliber has a market cap that is 27 times smaller than Apple, the most valuable company in the world, with a market cap of roughly 2.7 trillion dollars.
Germany is the Country of Millionaires
Although Germany is a financial powerhouse, its residents do not do as well as citizens in other nations when it comes to average income.
With slightly under 54 000 dollars or 50 000 euros, Germany is ranked 11th in the world and 8th in Europe. In terms of immense wealth, Germany has the fourth-highest number of billionaires in the world, with roughly 134 billionaires.
Only India, China, and the United States have more billionaires, implying that there are about three billionaires per two million inhabitants in Germany.
Only Japan, China, and the United States have more billionaires than Germany. This means Germany is responsible for more than 5% of global emissions.
Germany’s Individuals are in Less Debts
There is little doubt that Germany has profited immensely from the euro by partnering with more sluggish economies in southern Europe.
As one of the few countries in the world with a balance of payment surplus, the Deutsche mark would have been far stronger than the euro.
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However, this has boosted German exports, making them cheaper for overseas consumers.
However, this only goes part of the way to explaining Germany’s current economic might; just as important are the relatively low levels of private debt, while the rest of Europe gorged on cheap credit during the 1990s and 1990s.
When banks stopped lending during the 2008 crash and recession, german companies and individuals refused to spend beyond their means. I
n Germany, borrowing is skilled, which is the same word for guilt, and there is an attitude that if you have to borrow, something is wrong with you.
This has been particularly beneficial to Germany in recent years, unlike its European counterparts, consumers and businesses did not need to cut spending to reduce debt levels. Germany is located in the heart of Europe, with access to the sea and excellent river connections.
Final Conclusion on How is Germany the richest country in Europe
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