• GDP: US$2.7 billion.
• Main imports: Food, petroleum products, manufactured goods, electrical products, motor vehicles and clothing.
• Main exports: Chemicals, motor vehicles, iron and steel products, manufactured goods and electrical products.
• Main trade partners: France, The Netherlands, UK and USA.

From the ruins of the Third Reich, both halves of divided post-war Germany emerged over the next two decades as the economic powerhouses of their respective European blocs. The unified German economy is now the fifth-largest in the world. The bulk of its production is in the West (the pre-unification Federal Republic). The Western economy has large chemical and car manufacturing plants, mechanical, electrical and electronic engineering, and rapidly growing advanced technology and service sectors in computing, biotechnology, information processing and media. The East’s (former Democratic Republic’s) economy never dominated COMECON, the Soviet bloc Council for Mutual Economic Assistance, in the way that the West’s did the EU, but it consistently recorded the highest growth and per capita income within the bloc.
Reunification illustrated starkly how far the East had fallen behind the West. After initial difficulties, and much pessimistic forecasting, the Eastern economy was absorbed fairly painlessly into the West albeit at considerable financial cost. Among the benefits was a head start for German companies entering the new markets of Eastern Europe. Nonetheless, Germany’s most important trading partners are its fellow members of the EU. Trade with China is on a similar scale to that with several Eastern European nations. The huge expenditure incurred as a result of unification – estimated at US$100 billion – had a knock-on effect on the speed of the German pursuit of economic and political union in Europe as the Government needed to ensure that Germany met the economic criteria (budget deficit, total debt) for entry into European Monetary Union (EMU) and the introduction of the single currency. The high cost of unification and long-term structural problems in the economy (especially the stagnation of key industrial sectors) have put the German economy under pressure since the late 1990s. Entry into EMU has demanded further fiscal discipline. In 2004, annual growth was 1.6 per cent while unemployment remained close to 0.1 per cent.

Businesspeople are expected to dress smartly. English is spoken by many local businesspeople, but it is an advantage to have a working knowledge of German, or an interpreter. Appointments should be made well in advance, particularly in the summer. Appointments may be suggested slightly earlier in the day than is often the custom in the UK. Once made, appointment times should be strictly adhered to. Some firms may close early Friday afternoon. Always use titles such as Herr Doktor or Frau Doktor when addressing business contacts. Punctuality is essential for business visits. Office hours: Mon-Fri 0900-1700 (many close earlier on Fridays).

Deutscher Industrie und Handelstag (Association of German Chambers of Industry and Commerce)
Breite Strasse 29, 10178 Berlin, Germany
Tel: (30) 203 080.
Website: www.diht.de.
The organisation is affiliated with 83 Chambers of Industry and Commerce. There are also Chambers of Industry and Commerce in all major German towns and a regional Chamber of Commerce for each of the states.

German-British Chamber of Industry and Commerce
Mecklenburg House, 16 Buckingham Gate, London SW1E 6LB, UK
Tel: (020) 7976 4100.
Website: www.ahk-london.co.uk or www.germanbritishchamber.co.uk.
This organisation also has branch offices in most major Western European capitals.

German American Chamber of Commerce
24th Floor, 12 East 49th Street, New York, NY10017, USA
Tel: (212) 974 8830.
Website: www.gaccny.com
This organisation has other branches throughout the USA.

German Convention Bureau (Deutsches Kongressbüro)
Website: www.gcb.de
This organisation has branches in Frankfurt/M and USA.
Frankfurt/M:
Münchner Strasse 48, 60329 Frankfurt/M, Germany
Tel: (69) 242 9300.
New York:
122 East 42nd Street, 52nd Floor, New York, NY 10168-0072, USA
Tel: (212) 661 4582.
Founded in 1973, the Bureau is a non-profit-making organisation sponsored by Germany’s major convention cities, hotels, travel agents and carriers, as well as the country’s leading travel and tourist associations, including German National Tourist Board, Lufthansa and German Railways.