section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Germany has a social market economy with a highly skilled labour force, a low level of corruption, and a high level of innovation. It is the largest economy in Europe by nominal GDP, as well as the world's third-largest by nominal GDP and sixth-largest by PPP-adjusted GDP. Its PPP-adjusted GDP per capita amounted to 115% of the EU average in 2024. The country's service sector contributes approximately 72% of the total GDP, industry 27%—with Germany having the largest manufacturing sector in Europe —and agriculture 1%, as of 2023. The unemployment rate published by Eurostat amounts to 3.2% as of January 2020, which is the fourth-lowest in the EU.
  
  Germany is part of the European single market which represents more than 450 million consumers. In 2017, the country accounted for 28% of the eurozone economy according to the International Monetary Fund. Germany introduced the common European currency, the euro, in 2002. Its monetary policy is set by the European Central Bank, which is based in Frankfurt. Germany is the world's third-largest exporter and third-largest importer, and it has the second-largest trade surplus after China. Its largest trading partners in 2024 were the United States, China, and the Netherlands. Germany's main exports are vehicles, machinery, and chemical goods.
  
  The German automotive industry is regarded as one of the most competitive and innovative in the world. It was the sixth-largest by production and largest by export value in 2023. Germany is home to Volkswagen Group, the world's second-largest automotive manufacturer by vehicle production.
  
  Of the world's 500 largest stock market-listed companies by revenue in 2024, the Fortune Global 500, 29 were based in Germany. The DAX, Germany's stock market index operated by the Frankfurt Stock Exchange, includes 30 major Germany-based companies. Well-known international German brands include Mercedes-Benz, BMW, Volkswagen, Audi, Porsche, Opel, Siemens, Bayer, Allianz, Adidas, Puma, Hugo Boss, SAP, Bosch and Deutsche Telekom. Berlin is a hub for startup companies and has become the leading location for venture capital-funded firms in the European Union. Germany is recognised for its large portion of specialised small and medium enterprises, known as the Mittelstand; these companies represent around 48% of the global market leaders in their segments, labelled hidden champions.
  
  Research and development efforts form an integral part of the German economy, with the country ranking fourth in research and development expenditure since 2005. In 2018, Germany ranked fourth globally in terms of number of science and engineering research papers published and third in the quality-adjusted Nature Index in 2023. Research institutions in Germany include the Max Planck Society, the Helmholtz Association, the Fraunhofer Society, and the Leibniz Association. Germany is the largest contributor to the European Space Agency. The country was ranked 9th in the Global Innovation Index in 2024.