Germany
Germany is currently experiencing a labor shortage, which is adversely affecting their Gross Domestic Product. If current trends continue in Germany the country could find itself in a serious recession. This would not only effect Germany but all of Europe as well for Germany is the single most important trading partner for almost all of the European countries (Bogdanowicz). This is not a new situation in Germany, for the past seven consecutive quarters activity in the construction sector of the German economy has declined (German GDP). Not only did German industrial output fall, but this was also the lowest annual increase in Gross Domestic Product since the first quarter of 1997, when the Gross Domestic Product
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Regardless of the government’s denial of a recession, there are several possible causes of the current economic situation in Germany such as the lack of skilled labor as well as a decline in trade. Due to the global economic downturn the German Finance Ministry blames the decline in global exports as a contributing factor to the unfortunate situation of the economy (German Finance). This lack of trading has led to the careful attitude of German investors as confidence in German business has declined for the fifth month in a row (Bogdanowicz).
The most probable origin of this state of economic affairs is the serious deficiency of German skilled workforce. The country’s birth rate is among the lowest in Europe. The German population is expected to fall from 82 million to less than 60 million people over the next fifty years and the workforce will be nearly cut in half (Germany Pressed). Interior Minister Otto Schily, “We must recognize that to secure our prosperity, out future, we are dependant on people from other countries with skills that we desperately need”(Germany Pressed). In order to salvage the German economy, experts say that at least half a million-immigrant workers will be essential (German Region).
If a country is on the brink of an economic crisis and their supply of skilled labor is dwindling then a country should reevaluate its immigration policies and recruit
1) What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically, what policy choices account for this success?
After World War II Germany was left devastated and in ruins. There had been massive destruction of the country’s infrastructure (Bessel 2011), it lacked political structure and economic activity had plummeted. There was a scarcity of food, fuel and housing and Germany was in no condition to clothe or feed its population (O’Dochartaigh 2003).
Although the UK made several mistakes, resulting in their disappointing performance, Germany’s success in the Golden age is the main reason for such a difference in gross domestic product and therefore the main talking point when it comes to economic analysis.
In the mid 30’s Germany was in a perpetual state of economic decline. The First World War had decimated all economic growth, increased inflation, and made unemployment an all-time high. From the suffering of
The global mobility of human resources between countries is a key driving force of the currently ongoing economic and regional development all over the world. It is indisputable that the immigration of international labour force would exert many positive and important impacts on the economic, cultural and social structure of both migrant-receiving and migrant-sending countries. Actually, the trend of temporary and permanent immigrants increasing in some western countries began to gain momentum in recent years. Organization for Economic Cooperation Development (OECD 2004) reports indicated that there were more than 1 million new immigrants in the United States in 2001 and 2002, increased by 25% from 2000; in some European countries
Following the Second World War, Germany was rebuilt out of practically nothing into one of the richest countries of the world. This well-known transformation is known as the "Wirtschaftswunder" (wonder of economics). Yet in the recent reunification of West and East Germany, German leadership has ignored crucial lessons from this successful period of transformation. Three problems highlight this claim:
This paper has investigated immigrants’ employment rates in terms of entry, assimilation, and cohort effects, and the paper also takes economic conditions into account. To identify the potential mechanisms leading to this deterioration, further research can be extended to different factors of deterioration, especially
Despite the recession formally ended in June 2009, the American economy had been growing at a rate of 2%, about one percentage point below its long-term average. The author say that we need lots of capable people to solve this problem and immigration is the quick way to get such people and a market-based immigration system can encourage immigration.
Germany had very low employment rates in this time and it made it even harder to get back to a stable economy. In this time a lot of people had no jobs so this also did not help Germany because companies were going out of business. This directly led to the decline of Germany's economy. When having no business’s running the country as no money coming in and can not send anything out.
Germany, a country rich in culture and heritage, yet plagued by the fallout of World War I and World War II, has progressed to become the centerpiece of the European Union and the world’s third richest economy. The first German Empire dates back to the Roman Empire starting in the 8th century AD. During the Middle Ages the German Empire fended off many attacks against their soil from the Hungarians and the Slavs. Fighting and power struggles continued until the 1400’s, when the modern world gradually came into existence with intellectual, economic and political changes.
The German economy is the largest in Europe and worldwide Germany has the fifth largest economy (“World fact book”, n.d.). It is clear that the German economy holds a key position in the world marketplace. Gross domestic product (GDP) growth is an important consideration for foreign investment as it speaks to the overall health of an economy. GDP growth can be attributed to spending and investments both on and from imports and exports (“What is GDP”, 2005). In 2014 the reported GDP growth rate in Germany was 1.4%, up .9 % from the prior year (“World fact book” n.d.). The Eurozone was deeply affected by a recession stemming from the US and made worse by poor economic conditions in Greece and Spain, among other countries in
When the American stock exchange collapsed in 1929, it caused an economic depression. This disastrous situation resulted in a huge number of unemployed people in Germany,
As it began, our century drew to a close, with Germany once again the economic powerhouse and political hub of Europe. What is remarkable is how quickly this happened, how unbidden and unanticipated: the toppling of the Berlin Wall in November 1989; the reunification a year later; the collapse of the Soviet Union and the end of the Cold War in late December 1991; a resurgent impetus to West European integration in 1992; and NATO enlargement, which was consecrated in April 1999. Unquestionably, this chain of events has profoundly affected Germany’s situation over the past decades. For the first time since the establishment of the Federal Republic of Germany (FRG) in 1949 and the painstaking process of
German Economy. Germany is the fifth largest economy in the world and the largest in Europe. In the ten years before the great recession, from
Germany is quite accepting of immigrants and they are very welcoming. Germany has the second largest immigrant population in Europe, United Kingdom is the largest. Immigrants have contributed greatly to the prosperity of the German economy. A representative study shows that “foreign workers in Germany significantly contribute to the Bundesrepublik’s prosperity” (Lorenz, 2017). At any rate, the German economy is suffering from labour shortage and is urgently in need of immigrants to “counter an ageing demographic”. Germany” needs its immigrants to be doing much more than making doner kebabs — it needs them in its banks, its government offices, universities, and IT companies” (Sampath, 2016). Based on data from the OECD and the German statistics office, the study shows that Germany’s cultural diversity happens to be a major contributor to its economic success. Immigrants make up “9.6% of the population and one in five Germans has a migration background. The fact that Germany’s immigration rate is so high only tells half the story though” (Lorenz, 2017). The number of foreign specialists in Germany’s main industries is what really stresses the importance of immigration. Studies have proven that “relatively poor performing Bundesländer, with fewer foreign workers, could positively influence innovation and economic success by attracting talented personnel from abroad” (Lorenz, 2017). Also, as stated by Movinga, “the impressive number of companies with risk capital and the number