Kasia Davies
Research expert covering the German market
Germany - Statistics & Facts
Germany is Europe’s most powerful economy, and the most populous country located entirely on the continent. Its population enjoys very high standards of living and a comparatively strong welfare system, while country ranks very highly in terms of human development, equality, and freedom. In the one and a half centuries since Germany's founding, it has played a major role in determining the course of world history, through innovation, cooperation, and politics, although certain periods have also been characterized by turmoil, overshadowed by conflict and genocide.
When the communist system collapsed across Europe during the 1980s, Germany was officially reunified on October 3, 1990. As Germany (Berlin especially) was viewed as the meeting point of democracy and communism in Europe, the dismantling of the Berlin Wall in 1989 came to symbolize the fall of European communism, however, after more than three decades of unity there are still many socioecnonomic disparities between the former-East and West of the country. In recent decades, Germany has re-emerged as a world power and a de facto leader of the European Union. After a brief downturn in the early 2000s, Angela Merkel assumed power in 2005, from which point the German economy became synonymous with stability, resilience, and growth, even during crises such as the Great Recession and the Covid pandemic. Since Olaf Scholz and his coalition government took over in 2021, they have struggled to achieve the same levels of popularity and stability as the preceding administration.
A brief history
Established in 1871, Germany's rapid industrialization, economic growth, and imperial expansion quickly saw it challenge the other world powers on an international scale. German history in the early 20th century was then dominated by its role in both World Wars and the atrocities committed under the Nazi regime. The fallout from both wars saw Germany lose a significant share of its territories and resources as it fell under the influence of other major powers, particularly the victorious Allies following WWII. During the Cold War, the Soviet-controlled east would eventually split and become the German Democratic Republic (known as East Germany, or the DDR), while the other three zones formed the Federal Republic of Germany (known as West Germany). West Germany operated as a liberal democracy with a market economy, while East Germany operated under communist and socialist structures. Both countries saw significant economic growth during the post-war period, and West Germany, along with France, took a leading role in European integration throughout the remainder of the century.When the communist system collapsed across Europe during the 1980s, Germany was officially reunified on October 3, 1990. As Germany (Berlin especially) was viewed as the meeting point of democracy and communism in Europe, the dismantling of the Berlin Wall in 1989 came to symbolize the fall of European communism, however, after more than three decades of unity there are still many socioecnonomic disparities between the former-East and West of the country. In recent decades, Germany has re-emerged as a world power and a de facto leader of the European Union. After a brief downturn in the early 2000s, Angela Merkel assumed power in 2005, from which point the German economy became synonymous with stability, resilience, and growth, even during crises such as the Great Recession and the Covid pandemic. Since Olaf Scholz and his coalition government took over in 2021, they have struggled to achieve the same levels of popularity and stability as the preceding administration.
