section_path: History/Federal Republic
section_name: Federal Republic
paragraph_text: Federal Republic
  
  The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%), and in 2005 (+1.4%). Unemployment was also chronically high. Due to these problems, together with Germany's aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging programme of belt-tightening reforms, Agenda 2010, including the labour market reforms known as Hartz I - IV.
  
  In the later part of the first decade of 2000, the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living and that its effects are limited and temporary.
  
  The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle. German industrial output dropped to 3.6% in September vis-à-vis August. In January 2009 the German government under Angela Merkel approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates. Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports - primarily from outside the eurozone - and relatively steady consumer demand.
  
  Germany is a founding member of the EU, the G8, and the G20, and was the world's largest exporter from 2003 to 2008. In 2011 it remained the third largest exporter and third largest importer. Most of the country's exports are in engineering, especially machinery, automobiles, chemical goods, and metals. Germany is a leading producer of wind turbines and solar-power technology. Annual trade fairs and congresses are held in cities throughout Germany. 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.
  
  Through 2012, Germany's economy continued to be stronger relative to local neighbouring nations. In 2023, Germany experienced economic difficulties as a result of the closure of Russian natural gas resources due to international sanctions following the Russian invasion of Ukraine. Germany imported 55% of its gas from Russia at the time when Russia started the invasion in 2022. Amid a global energy crisis, Chancellor Olaf Scholz committed to weaken dependence on Russian energy imports by halting certification of Nord Stream 2, while also committing to his long-term predecessor Angela Merkel's policy of phasing out nuclear energy.
  
  As of December 2023, Germany is the third largest economy in nominal terms in the world after the United States and China, and the largest economy in Europe. It is the third largest export nation in the world.
  
  In April 2024, a report by the German Economic Institute revealed that despite attempts to expand into other markets, the German economy remains heavily reliant on China for various products and raw materials.
  
  During 2024, the German economy experienced its second consecutive year of contraction. Europe's largest economy declined by 0.2% over the year, following a 0.3% contraction in 2023. Germany's trade surplus with the United States, reported by Reuters to have reached a record €65 billion (£54.7 billion) during the first 11 months of 2024, has made the nation a likely target for potential tariffs from Donald Trump's administration. The economic climate has also been affected by widespread layoffs across major German corporations. Companies such as Siemens, Bosch, Thyssenkrupp, and Deutsche Bahn, all featured in the Fortune 500, are estimated to have collectively cut over 60,000 jobs during the first 10 months of 2024. Bosch, a highly regarded manufacturing firm, announced in November alone plans to reduce its workforce by approximately 7,000 employees.
  
  The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%), and in 2005 (+1.4%). Unemployment was also chronically high. Due to these problems, together with Germany's aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging programme of belt-tightening reforms, Agenda 2010, including the labour market reforms known as Hartz I - IV.
  
  In the later part of the first decade of 2000, the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living and that its effects are limited and temporary.
  
  The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle. German industrial output dropped to 3.6% in September vis-à-vis August. In January 2009 the German government under Angela Merkel approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates. Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports - primarily from outside the eurozone - and relatively steady consumer demand.
  
  Germany is a founding member of the EU, the G8, and the G20, and was the world's largest exporter from 2003 to 2008. In 2011 it remained the third largest exporter and third largest importer. Most of the country's exports are in engineering, especially machinery, automobiles, chemical goods, and metals. Germany is a leading producer of wind turbines and solar-power technology. Annual trade fairs and congresses are held in cities throughout Germany. 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.
  
  Through 2012, Germany's economy continued to be stronger relative to local neighbouring nations. In 2023, Germany experienced economic difficulties as a result of the closure of Russian natural gas resources due to international sanctions following the Russian invasion of Ukraine. Germany imported 55% of its gas from Russia at the time when Russia started the invasion in 2022. Amid a global energy crisis, Chancellor Olaf Scholz committed to weaken dependence on Russian energy imports by halting certification of Nord Stream 2, while also committing to his long-term predecessor Angela Merkel's policy of phasing out nuclear energy.
  
  As of December 2023, Germany is the third largest economy in nominal terms in the world after the United States and China, and the largest economy in Europe. It is the third largest export nation in the world.
  
  In April 2024, a report by the German Economic Institute revealed that despite attempts to expand into other markets, the German economy remains heavily reliant on China for various products and raw materials.
  
  During 2024, the German economy experienced its second consecutive year of contraction. Europe's largest economy declined by 0.2% over the year, following a 0.3% contraction in 2023. Germany's trade surplus with the United States, reported by Reuters to have reached a record €65 billion (£54.7 billion) during the first 11 months of 2024, has made the nation a likely target for potential tariffs from Donald Trump's administration. The economic climate has also been affected by widespread layoffs across major German corporations. Companies such as Siemens, Bosch, Thyssenkrupp, and Deutsche Bahn, all featured in the Fortune 500, are estimated to have collectively cut over 60,000 jobs during the first 10 months of 2024. Bosch, a highly regarded manufacturing firm, announced in November alone plans to reduce its workforce by approximately 7,000 employees.
  
  The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%), and in 2005 (+1.4%). Unemployment was also chronically high. Due to these problems, together with Germany's aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging programme of belt-tightening reforms, Agenda 2010, including the labour market reforms known as Hartz I - IV.
  
  In the later part of the first decade of 2000, the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living and that its effects are limited and temporary.
  
  The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle. German industrial output dropped to 3.6% in September vis-à-vis August. In January 2009 the German government under Angela Merkel approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates. Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports - primarily from outside the eurozone - and relatively steady consumer demand.
  
  Germany is a founding member of the EU, the G8, and the G20, and was the world's largest exporter from 2003 to 2008. In 2011 it remained the third largest exporter and third largest importer. Most of the country's exports are in engineering, especially machinery, automobiles, chemical goods, and metals. Germany is a leading producer of wind turbines and solar-power technology. Annual trade fairs and congresses are held in cities throughout Germany. 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.
  
  Through 2012, Germany's economy continued to be stronger relative to local neighbouring nations. In 2023, Germany experienced economic difficulties as a result of the closure of Russian natural gas resources due to international sanctions following the Russian invasion of Ukraine. Germany imported 55% of its gas from Russia at the time when Russia started the invasion in 2022. Amid a global energy crisis, Chancellor Olaf Scholz committed to weaken dependence on Russian energy imports by halting certification of Nord Stream 2, while also committing to his long-term predecessor Angela Merkel's policy of phasing out nuclear energy.
  
  As of December 2023, Germany is the third largest economy in nominal terms in the world after the United States and China, and the largest economy in Europe. It is the third largest export nation in the world.
  
  In April 2024, a report by the German Economic Institute revealed that despite attempts to expand into other markets, the German economy remains heavily reliant on China for various products and raw materials.
  
  During 2024, the German economy experienced its second consecutive year of contraction. Europe's largest economy declined by 0.2% over the year, following a 0.3% contraction in 2023. Germany's trade surplus with the United States, reported by Reuters to have reached a record €65 billion (£54.7 billion) during the first 11 months of 2024, has made the nation a likely target for potential tariffs from Donald Trump's administration. The economic climate has also been affected by widespread layoffs across major German corporations. Companies such as Siemens, Bosch, Thyssenkrupp, and Deutsche Bahn, all featured in the Fortune 500, are estimated to have collectively cut over 60,000 jobs during the first 10 months of 2024. Bosch, a highly regarded manufacturing firm, announced in November alone plans to reduce its workforce by approximately 7,000 employees.