Germany: In-depth PESTLE Insights

Germany: In-depth PESTLE Insights


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Executive Summary

Germany: In-depth PESTLE Insights

Summary

This PESTLE country analysis report on Germany provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis.

Key Highlights

- The political landscape section discusses the evolution of the political scenario in Germany, as well as the country's economic, social, foreign, and defense policies. The section also discusses the country's performance according to World Bank Governance Indicators.

- The economic landscape section outlines the evolution of Germany's economy, as well as the country's performance in terms of GDP growth, composition by sector (agriculture, industry, and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector, and employment."

- The social landscape section analyzes the government's social welfare policies, as well as the country's performance in terms of healthcare, income distribution, and education.

Scope

- Understand the political system in Germany through analysis of key figures in the country and governance indicators.

- Understand the economic situation in Germany through a balanced assessment of core macroeconomic issues.

- Understand customer demographics in Germany through analysis of income distribution and the rural-urban split, as well as healthcare and education.

- Understand the technological landscape in Germany through analysis of relevant laws and policies, as well as patents data.

Reasons to buy

- What is the outlook in Germany in terms of political stability, policies towards business, and the popularity of the government?

- How does Germany perform in terms of GDP growth, its fiscal situation, international investment position, monetary situation, and employment?

- How does Germany perform in terms of healthcare, income distribution, and education?

- How does Germany perform in terms of technology-intensive sectors like IT, life sciences, and R&D expenditure trends?



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Table of Contents

Overview 2

Catalyst 2

Summary 2

Key findings 2

PESTLE highlights 4

Key fundamentals 6

Key Facts and Geographic Location 14

Key facts 14

Geographic location 15

PESTLE Analysis 16

Summary 16

Political analysis 18

Overview 18

Current strengths 18

Future prospects 20

Future risks 20

Economic analysis 22

Overview 22

Current strengths 22

Current challenges 24

Future prospects 25

Future risks 26

Social analysis 28

Overview 28

Current strengths 28

Current challenges 30

Future prospects 33

Future risks 34

Technological analysis 37

Overview 37

Current strengths 37

Current challenges 38

Future prospects 38

Cyber-security research to boost competitiveness 39

Future risks 39

Legal analysis 40

Overview 40

Current strengths 40

Current challenges 40

Future prospects 42

Future risks 42

Environmental analysis 44

Overview 44

Current strengths 44

Current challenges 44

Future prospects 45

Future risks 47

Political Landscape 48

Summary 48

Evolution 48

1871-1918 48

1918-45 48

1945-89 48

1989-2018 49

Structure and policies 50

Key political figures 50

Structure of government 51

Legislative branch of government 51

Executive branch of government 52

State/provincial 52

Key political parties 53

Composition of parliament 54

Key policies 54

Performance 56

Governance indicators 56

Outlook 56

Economic Landscape 58

Summary 58

Evolution 58

Pre-1990 58

1990-2005 58

2006-2017 59

Structure and policies 59

Financial authorities and regulators 59

German stock markets 60

Performance 60

GDP and growth rate 60

Fiscal situation 66

Exports and imports 67

Current account 68

External debt 68

International investment position 68

Monetary situation 68

Key monetary indicators 68

Employment 69

Outlook 70

Social Landscape 71

Summary 71

Evolution 71

Structure and policies 71

Demographic composition 71

Education 73

System of education 73

Healthcare 74

Social welfare policies 74

Performance 75

Healthcare 75

Income distribution 76

Education 76

Outlook 77

Technological Landscape 78

Summary 78

Evolution 78

Structure and policies 78

Technology agreements and pacts 78

Performance 79

Intellectual Property 79

R&D 79

ICT 79

Outlook 80

Legal Landscape 81

Summary 81

Evolution 81

Structure and policies 81

Judicial system 81

The Federal Constitutional Court 82

Taxation 82

Performance 83

Effectiveness of the legal system 83

Outlook 83

Environmental Landscape 84

Summary 84

Evolution 84

Structure and policies 84

Environmental regulations 84

Participation in global efforts, agreements, and pacts 84

Performance 85

Environmental impact 85

Outlook 85

Appendix 87

Ask the analyst 87

Disclaimer 87

List of Figures

Figure 1: Map of Germany 15

Figure 2: Unemployment rate in Germany, 2008-17 23

Figure 3: Real GDP growth in Germany vs peers, 2008-17 24

Figure 4: Government investment has fallen, 1997-2016 25

Figure 5: Ifo Business Climate, January 2005-May 2018 26

Figure 6: Policy rates of the world, January 2012-June 2018 27

Figure 7: Healthcare resources in Germany, 2016 29

Figure 8: Better Life Index, 2016 30

Figure 9: Gender wage gap (% of male median wage), 2016 31

Figure 10: Incidence of part-time employment among women in OECD countries, 2017 (or nearest year) 32

Figure 11: Difference in the average tax wedge between one-earned married couple, 0 children and one-earned married couple, 2 children in 2017 33

Figure 12: Old age dependency ratio, 2015, 2025f and 2050f 34

Figure 13: Total dependency ratio in Germany, 2015-60f 35

Figure 14: Inflows permanent immigrant and asylum seekers in Germany, 2006-2016 36

Figure 15: Tertiary education attainment (30-34 years) in EU countries, 2017 39

Figure 16: Tax wedge for single average worker in Germany, 2017 41

Figure 17: Professional services regulations in Germany, 2013 43

Figure 18: Premature deaths attributable to fine particulate matter (PM2.5), ozone (O3) and nitrogen dioxide (NO2) exposure, 2012 45

Figure 19: Share of renewable energy in gross electricity consumption, 2006-16 46

Figure 20: Gross electricity generation in Germany, 2017 47

Figure 21: Germany-political events timeline 50

Figure 22: Germany-key political figures 51

Figure 23: Composition of parliament, 2017 54

Figure 24: Federal budget and financial plans, 2017-2021 55

Figure 25: Performance of the German economy, 2007-17 59

Figure 26: GDP and GDP growth rate in Germany, 2012-22f 62

Figure 27: Composition of GDP by sector in Germany, 2017 63

Figure 28: Germany's agricultural output, 2012-17 64

Figure 29: Germany's industrial output, 2012-17 65

Figure 30: Germany's services output, 2012-17 66

Figure 31: Germany external trade, 2012-16 67

Figure 32: Consumer price index and consumer price index-based inflation in Germany, 2012-22f 69

Figure 33: Unemployment in Germany, 2012-22f 70

Figure 34: Germany-composition by religion, 2015 73

Figure 35: Expenditure on healthcare in Germany, 2011-17 76

Figure 36: Expenditure on education in Germany, Public, 2011-16 77

Figure 37: Internet users in Germany, 2012-16 80

Figure 38: Carbon dioxide emissions in Germany, 2008-15 85

List of Tables

Table 1: Germany-key fundamentals 6

Table 2: Germany-key facts 14

Table 3: Analysis of Germany's political landscape 18

Table 4: Analysis of Germany's economy 22

Table 5: Analysis of Germany's social system 28

Table 6: Analysis of Germany's technological landscape 37

Table 7: Analysis of Germany's legal landscape 40

Table 8: Analysis of Germany's environmental landscape 44

Table 9: Mid-year population by age (% of total population), 2017, as of gender 72

Table 10: Patents granted by the USPTO, 2010-15 79

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