Germany profile

Demography and Health

Germany is a highly populous country with about 83.5 million people in 2024, placing it among the more populous nations globally. The demographic profile is distinctly aging: the birth rate sits at 8.3 births per 1,000 people (2023) while life expectancy at birth is 80.5 years (2023), contributing to a relatively high median age and pressures on pension and health systems over the longer term. Mortality is elevated somewhat by the aging population, with a crude death rate of 12.3 per 1,000 people (2023). Net migration remains a key contributor to population dynamics, with 36,954 people arriving on balance in 2024, ranking Germany as a major destination for workers and refugees within Europe. The unemployment rate is modest at 3.07% (2023), reflecting a robust and diversified economy, though regional and sectoral disparities persist as in many advanced economies. On health outcomes, life expectancy and access to care are strong; current health expenditure accounts for 11.8% of GDP (2023), and domestic general government health expenditure per capita, PPP, is about 6,791 international dollars (2022), underscoring substantial public investment in health services. There is a dense network of physicians, with 4.52 physicians per 1,000 people (2021), supporting a high standard of medical care, though mental health indicators such as suicide mortality (12.9 per 100,000 in 2021) remind of ongoing public health challenges. Germany also performs well in digital inclusion, with about 93.5% of the population using the Internet in 2024, reflecting broad access to online services and e-government tools. Population-level indicators such as poverty (14.8% at national poverty lines in 2021) and undernourishment (2.5% in 2022) indicate persistent, though comparatively moderate, social vulnerability alongside a strong safety net. Overall, demography combined with health outcomes and services makes Germany a mature welfare state confronting the familiar dynamics of an aging society while leveraging migration, technology, and robust health infrastructure to sustain living standards.

Economy

Germany’s economy is among the world’s largest, characterized by high productivity, advanced manufacturing, and a strong external orientation. GDP per capita stands at about 55,800 current U.S. dollars in 2024, with GDP per capita at purchasing power parity around 72,300 international dollars (2024), signaling considerable wealth and purchasing power domestically and for international exposure. The economy benefits from a global export focus; exports of goods and services account for roughly 42.1% of GDP in 2024, while imports comprise about 38.2% of GDP, indicating a highly integrated and open economy with substantial value-added trade. The country also ranks highly in high-technology production and innovation, as evidenced by high-technology exports totaling about 255.7 billion U.S. dollars (2023) and residents filing 39,822 patent applications in 2021 (ranked strongly). Research and development intensity is notable, with R&D expenditure at 3.13% of GDP in 2022, among the higher shares globally, underscoring Germany’s commitment to knowledge-driven growth. Inflation remains moderate at 2.26% in 2024, supporting price stability alongside robust growth. The current account is in surplus at 5.73% of GDP (2024), highlighting Germany’s net saving position and its role as a major supplier of capital and technology. The economy also benefits from a well-developed financial and corporate sector, with foreign direct investment net inflows at 1.02% of GDP (2024) and substantial private and public investment activity. Currency fluctuations and external demand cycles can influence cyclicality, but the overall trajectory remains one of resilience, typified by a sizable skilled workforce, advanced manufacturing base, and strong brand position across automotive, engineering, chemicals, and machinery sectors.

Trade and Investment

Trade is a central pillar of the German economy. The country is a leading exporter of goods and services, aided by a highly integrated supply chain network and a reputation for precision engineering and quality. The external orientation is reflected not only in the 42.1% exports share of GDP but also in high-technology prowess, with exports of high-tech goods significant enough to rank Germany among the top exporters globally. The import side is robust as well, with imports accounting for 38.2% of GDP in 2024, underscoring the country’s role as a production hub that brings in materials, components, and capital goods for its sophisticated industry. Foreign direct investment inflows are positive but measured, at 1.02% of GDP in 2024, suggesting openness to capital with a reliance on domestic capabilities and European markets. The current account balance is a healthy surplus of 5.73% of GDP (2024), reflecting strong competitiveness, a focus on export-led growth, and disciplined macroeconomic management. Germany’s position as a hub for innovation and manufacturing supports a globally integrated value chain, while ongoing concerns include global supply chain shifts, energy transition costs, and external demand fluctuations. The country also benefits from a highly capable logistics and infrastructure network that underpins efficient trade flows, as seen in quality indicators for trade and transport infrastructure.

Governance and Institutions

Germany displays a robust institutional framework with strengths in governance quality and the rule of law, while political stability remains acceptable though not flawless. Regulatory quality is high (1.46 in 2023, rank 18), reflecting effective rulemaking and policy implementation. The rule of law is strong (1.55, 2023, rank 15), supporting predictable enforcement, contract rights, and judicial independence. Control of corruption (1.66, 2023, rank 13) and government effectiveness (1.19, 2023, rank 28) indicate a well-functioning state apparatus with relatively low corruption and competent public administration. Political stability and absence of violence/terrorism are more moderate (0.587, 2023, rank 62), suggesting that while violence is not a pressing concern, social and political challenges persist as in many mature democracies. Overall, governance indicators point to a high-capacity state with strong institutions, capable of steering policy in areas like industry policy, social protection, and innovation while facing the usual transitional pressures of a modern economy, such as reform fatigue and balancing fiscal sustainability with social and climate initiatives. The logistics performance index (quality of trade and transport-related infrastructure) at 4.3 (2022) further evidences a well-run system for moving goods, underscoring the governance of public services and infrastructure as a backbone of economic efficiency.

Infrastructure and Technology

Infrastructure and technology in Germany are among the most advanced in Europe and globally. The logistics performance index scoring 4.3 (2022) signals high-quality trade and transport infrastructure, enabling efficient import, production, and export activities. The digital landscape is strong, with 93.5% of the population using the Internet in 2024, placing Germany at the forefront of digital inclusion and e-services adoption. The country’s technology base is reinforced by a robust patent ecosystem, with residents filing 39,822 patent applications in 2021 (rank 5), indicating a vibrant culture of invention and commercialization. Research and development is a priority, with 3.13% of GDP spent on R&D in 2022, one of the higher shares among developed economies, helping sustain innovation-led growth and the development of high-tech sectors. The health and science sectors benefit from substantial public and private investment, including a strong domestic health financing framework and advanced medical workforce metrics, while the country’s education and training systems support a skilled labor pool aligned with technology-intensive industries. Germany’s export orientation also drives the development of sophisticated supply chains and digital infrastructure, though the transition toward renewable energy and digitization continues to shape investment patterns and industrial policy.

Environment and Sustainability

Germany faces the dual challenge of maintaining strong growth and advancing environmental sustainability. Total greenhouse gas emissions per capita, excluding land use, land-use change, and forestry (LULUCF), stand at 8.13 t CO2e per person in 2023, underscoring decarbonization ambitions within an energy-intensive economy. Renewable energy constitutes 17.6% of total final energy consumption in 2021, reflecting ongoing progress in the energy transition, even as fossil and other low-carbon sources still play a significant role. Water resource stress is notable, with freshwater withdrawal as a share of available freshwater resources at 35.4% in 2021 (level 49 in global rankings), indicating a need for continued water management and efficiency. While Germany’s poverty rate is moderate and undernourishment is low (2.5% in 2022), environmental sustainability remains central to policy agenda, including climate targets, industrial decarbonization, and investment in clean technologies. The country’s high current account surplus, research intensity, and strong institutions position it to finance and implement ambitious climate and environmental programs, even as the transition incurs short- to medium-term economic costs and structural adjustments. Overall, Germany demonstrates a credible commitment to balancing economic prosperity with environmental stewardship, leveraging innovation, infrastructure, and governance to pursue long-run sustainability goals.