After the second world war German Economy and Business was a story of recovery and renewal . Recovery from this complete state of devastation was not easy. However, Currency reform,
elimination of price control and reduction of marginal tax rates helped the economy to regain its strength and stability. Being one of worlds most developed economies, German Economy is the largest in Europe and the third largest in the world. There is free enterprise and competition in the economy and the system runs as a social market economy . The government, however, plays a role by providing subsidies and claiming ownership over certain sectors.
Exports have traditionally been a point of strength for the German economy and it assures a steady rise in the National output. Germany very logically advocates a close knit association and integration among the European States. She is a part of the European Union and also uses the Euro,the European currency. However, the recent slowing down of the pace of growth of the German Economy and business is mainly due to the inflexible nature of the labor market and the strict bureaucratic regulations on new businesses.
Location of Germany is a major advantage for the German Economy and business. It is well reputed for its infrastructure and different lines of business. Detroit and Chicago are the major areas where German business is concentrated. Real Estate in Germany is well organized and the market assures you of the best bargains.
The primacy of Insurance in German Economy and Business is apparent from the number of insurance companies the country has and the intense competition in the sector .Of the 430 insurance Companies that the Republic of Germany has only 40 are subsidiaries of foreign companies. The major insurance Companies are:
- Allianz,
- Aachener und Münchener Lebensversicherung,
- The AXA group
- Münchner Rück
- Deutsche Herold
- Deutscher Ring
The mortgage system is also well developed and important in German Economy and Business. Being one of the largest economy of the world, Germany is one of the l argest financial centers of Europe . Many of its Banks and also some industrial and service corporations are a part of the mortgage sector.
It was primarily Xetra which played a major role in opening up the German Stock Exchange to the foreign investors and world participation. Therefore of the 300 participants 47% are foreign Nationals. The German stock exchange has a major share in the European Market. German Economy and Business is well supported by a well developed banking network . Deutsche Bundescbank , Frankfurt and European Central Bank , Frankfurt is the two Central Banks that the country has. Besides there are also some State or Communal owned and some Commercial Banks.