Sage's Germany Blog

1. Corporate tax cut: In Germany a corporate tax cut was proposed following tax cuts in other countries such as the US and Britain. German minister Altmaier says that the tax cut is necessary to protect workers, and encourage innovation. The money for the tax cut would be made up using about half of the money gained from the increase in tax revenues. The argument for this tax cut is that it would help corporations and workers. The argument against would be that it would take too much money out of tax revenues for the government “German Minister Looks to Tax Cuts as Economy Contracts.” Reuters , Thomson Reuters, 17 Nov. 2018, uk.reuters.com/article/uk-germany-economy/german-minister-looks-to-tax-cuts-as-economy-contracts-idUKKCN1NM0QO. 2. Increase in Education Investment: Over the pat few years Germany has been increasing its spending on education more and more each year. In 2017, they increased their investment by 3.5% more than the previous year. Germany is most likely doing this ...

Germany GDP (USD, Billions) Consumer confidence compared to GDP Consumer spending compared to GDP Business confidence compared to GDP Government spending compared to GDP Balance of trade compared to GDP Most indicators such as business confidence, and balance of trade have not followed GDP closely over the past twenty years. However, some indicators, such as consumer spending, consumer confidence, and consumer spending, have followed trends in the GDP a little closer. This could suggest more of a relationship between GDP and these indicators than others.

Based on this graph, Germany's economy is currently in recovery. They just came out of a trough a couple years ago and are in a state of economic expansion.

Exports as a percentage of GDP: 46% of GDP (as of 2016) General government spending as a percentage of GDP: 43.9% of GDP (as of 2015) Net investment in non financial assets as a % of GDP: 0.655% of GDP (as of 2015) Tax revenue as a % of GDP: 36.5% of GDP (as of 2017) The savings rate as a % of GDP: 10.6% of GDP (as of 2015) imports as a % of GDP: 39.662% of GDP (as of 2015) Based on these figures, Germany has more injections into their economy than leakages.