Economic Overview of Germany and What it means for International Students?
The German economy is projected to grow by 4.1% in 2022 and 2.4% in 2023 - as reported in a detailed study by Organisation for Economic
Co-operation and Development (OECD). Germany has long been on the world map. Right from the onset of Imperialism to the World Wars and then the regeneration of one of the most robust economies of the world. The country has built its economy around a sound manufacturing base and continues to be one of the top exporters of heavy machinery, vehicles, and chemicals.
However, geopolitical and policy risks remain, which may negatively impact the return to pre-crisis economic growth patterns – these include rising interest rates in the US and the Eurozone, the resurgence of the pandemic in the autumn, and supply chain disruptions leading to shortages of essential goods and services in Germany, slowing economic activity once again. Currently, supply bottlenecks for important commodities and raw materials as well as microchips are slowing economic activity.
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Economic recovery expected in 2022-2023
The German economy is projected to grow by 4.1% in 2022 and 2.4% in 2023. A strong recovery in the industry can then be expected in 2023 – after all, existing orders still have to be processed. The German economy could then grow by 4.1%, which would be the largest increase in growth since reunification.
Germany attracts a large number of international students. The excellent education system in Germany coupled with low or no tuition fees makes German Universities a haven for quality education at an economical price. Especially for students from India, the country’s many state-run universities offer an excellent study abroad destination. Know more about studying in Germany here:
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The global economic recovery in 2021, mainly driven by China and the US, is boosting the German export economy. In June 2021 alone, Germany exported goods valued at 118.7 billion euros and imported goods valued at 102.4 billion euros. Germany is still considered to be one of the most international economies in the world. Exports account for approx. 50% of annual GDP, making Germany one of the three largest trading nations in the world.
Employment in Germany
According to the German Federal Employment Agency, approx. 2.6 million people are currently unemployed in Germany. The unemployment rate remained at 5.6% in August 2021 and is thus already below the pre-crisis rate. The unemployment rate is expected to decline further in the course of 2021 as the shortage of skilled labour continues to weigh heavily on the labour market. According to the study, unemployment should fall to 2.6 million this year and to 2.4 million by the end of 2022. The decline in reduced working hours (Kurzarbeit) will also continue.
What does this mean for international students?
Every student planning to study abroad aspires to find employment in the country of choice. Be it for a temporary tenure of a couple of years to a more long term immigration plan, the post-study jobs are a big determinant. Also, while all aspire to work, the question most students ask is…Would I be able to get a job in the country after I complete my graduation? The economic overview helps in suggesting the possibilities of finding that job. Needless to say, the more robust the economy, the better the growth and better job prospects. And the economic overview shows possibilities and opportunities in the popular job sectors in Germany.
The steady growth rate, though not necessarily very high, shows hope for the students planning to pursue their masters and bachelor's from Germany. It indicates, apart from other economic indicators, a continuous production cycle and a healthy job market. In short, if there are opportunities in the area of specialization at present in the country, the economy shows no signs of any trouble in the coming years or two. In fact, the positively inclined growth forecasts only suggest a positive set of macro parameters that would supplement the growth.
While the forecasts for the next couple of years do show a limited growth rate, there is a strong rebound predicted by the end of 2022. This should be a positive tick for selecting Germany as a study abroad destination.
To conclude, Germany is a steady and stable economy and with all positive indicators. While the country’s economy shows signs of stability, it is important to understand the most popular job sectors in the country. This necessarily refers to the industries which are showing a high growth rate and would, in turn, continue to seek resources for their growth.
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