Essay on Germany 's Economic Impact On Economy

1009 Words Jun 8th, 2016 null Page
Next, Germany earns more through its exports than Germany spends on imports. This has caused their currency to appreciate in value causing a higher currency exchange rate that has been benefiting Germany’s economy. Furthermore, through Germany’s strong balance of payment accounts they have experienced surpluses continuously from 2009 and have attracted foreign investors to Germany. For example, the German government has created tight fiscal policies that suppress the country’s domestic spending, including spending on imports. Thus, by cutting spending on domestic and imports, Germany has been able to create large surpluses from exports which account for 52% of their GDP and for that reason the German government has made it important that they continue to rely on exports for their economy. Interestingly, Germany has a city called Frankfurt where the European Central Bank and Germany 's Bundesbank reside in. For example, “Frankfurt is home to some of Europe 's largest commercial banks and the headquarters of two of the world 's biggest central banks” (WSJ). Also, Frankfurt is Germany’s financial capital where it boasts one of the world’s busiest airports and has drawn major companies such as KPMG to headquarter there.
In continuation, the volume of Germany’s bonds traded in Germany’s bond market was 4,704 Trillion in 2015. Germany’s stock market has performed well which is evident by “The German DAX closed above 12,000 for the first time this week, and is up a whopping 21.35%…

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