German economic model between success and braking

[vc_row][vc_column][dfd_spacer screen_wide_spacer_size="15" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]GERMAN ECONOMIC MODEL - Germany stated its economic power in the last few decades. Thanks to its strict policies it obtained an ever-increasing exportation rate of its products throughout the world. Though it has the Euro as for the other countries of the Eurozone, Germany’s power of his euros is on a totally different scale from its neighbors. Differently from other States, Germany solved 2008 crysis with flying colors thanks to a strong increase in the industrial sales volume. What are the reasons for its success? And is it still working so brilliantly today?

 [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][dfd_spacer screen_wide_spacer_size="50" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][/vc_column][/vc_row][vc_row][vc_column][dfd_heading subtitle="" delimiter_settings="delimiter_style:solid|delimiter_width:80|delimiter_height:1" undefined="" title_font_options="tag:h2" subtitle_font_options="tag:div" tutorials=""]

German economic model: the reasons of its success

[/dfd_heading][/vc_column][/vc_row][vc_row][vc_column][dfd_spacer screen_wide_spacer_size="15" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The economic success of Germany is acknowledged worldwide. But why has the German model been so successful? We have a single answer: Fraunhofer Gesellschaft, an applied research organization in Munich which has several institutes all over the country. This organization has been fundamental for the German industrial policies which Germany’s economy is totally based on. Fraunhofer Gesellschaft acts according to six possible modalities that depend on the same principle, as Luigi Guiso explains on “Il Sole 24 Ore”:

«A German firm that needs to solve a specific technological issue can ask Fraunhofer for help stipulating a research contract. Fraunhofer’s main strength is putting together the right mix of minds needed to decipher every single problem making full use of his scientists»

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][dfd_spacer screen_wide_spacer_size="50" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][/vc_column][/vc_row][vc_row][vc_column][dfd_heading subtitle="" delimiter_settings="delimiter_style:solid|delimiter_width:80|delimiter_height:1" undefined="" title_font_options="tag:h2" subtitle_font_options="tag:div" tutorials=""]

Nowadays what data shows is instability

[/dfd_heading][/vc_column][/vc_row][vc_row][vc_column][dfd_spacer screen_wide_spacer_size="15" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The sanitary and economic crisis which scarred 2020 and keeps on even these days nor leaving alone the German perfect economic model. Germany didn’t know how to manage the pandemic in the best way and today is battening down the hatches, so its economy is affected. Although the industrial sector is the one with the best results, the crisis does not spare even it and the cause can be found back in the past. MIrabaud analyst observes that:

“Public investments only represented 2.5% of German 2019 GDP compared to 3% of the Eurozone and over 3.5% in Japan. This could bring to a decline of the infrastructures which likely means low increases of productivity in the future. Abandoning the dogma of financial reports is a good beginning, but the efforts of the next government must be more substantial.”

And 2018 data were not better.[/vc_column_text][dfd_spacer screen_wide_spacer_size="50" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][dfd_heading subtitle="" delimiter_settings="delimiter_style:solid|delimiter_width:80|delimiter_height:1" undefined="" title_font_options="tag:h2" subtitle_font_options="tag:div" tutorials=""]

The German economic model still has hopes for the future

[/dfd_heading][dfd_spacer screen_wide_spacer_size="15" screen_normal_resolution="1024" screen_tablet_resolution="800" screen_mobile_resolution="480"][vc_column_text]What we have seen are some data that do not have to be totally allarming. Germany demonstrated in the past how it can stand up with its head held high. Moreover the German people still have an ace up their sleeve. Studies show that an important tool for their recover will be the “Green Recovery” and Germany already has many options at its disposal which make us optimistic for the future.

 

Click here for more information about gobal economy[/vc_column_text][/vc_column][/vc_row]

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram