Archive for the ‘Economy’ Category

If you follow the world economic news at all, you know that Germany is caught up in a tangle of European finance. German’s own economy may not always shine, but it is relatively stable. However, not all of our neighbors are doing as well!

As a result of our stability, many people around the world look to Germany for financial help in times of stress. Whether this is eastern European banks looking for help due to mortgage backed securities issues or Greece looking for help with its debt, Germany gets the call. German leaders offer advice, make speeches, and sometimes commit to large bailout programs along with other European nations.

What is this doing to the Germany economy?

In many ways, the average person doesn’t see a lot of change in the street. On a broader level, however, Germany’s economic fate is linked to that of the European Union. Thus, you can look at the euro for a gauge of price trends in Germany.

Looking at the last few months of euro trading, you can see that the economic stress across the European Union has been putting significant downward pressure on the euro. This makes it more expensive for Germans traveling outside the euro zone (as I’ve discovered at airport currency exchange stations), and also makes some imported goods more expensive for local shoppers.

On the other hand, this downward pressure on the euro makes it easier than ever for you to visit Germany. As currencies like the dollar, pound, and yuan appreciate against the euro, the real cost of hotel stays, train tickets, and nice dinners goes down for visitors like you.

Thus, if you are thinking about taking a trip to Germany, you may want to think about doing it soon! The euro has been through a lot of up and down cycles over its lifetime, and who knows what will happen next?

Take advantage of the current dip in the value of the euro to enjoy a Germany that is both beautiful and more affordable than ever. :-)

—Marcus

All over the world, the economy is big news. It’s no different in Germany… or is it?

Get a group of people sitting together in a beer garden discussing the state of the world and the economy is going to be a front and center topic. So what do you need to know? How should you react?

First, the need-to-know items. Some of them you have seen in the news, usually as a screaming headline. These include such fun statistics as:

• “World Tourist Organization says European Tourism down 8%”
• “German GDP Shrinks 3.8% in Q1 2009″
• “German Exports Plunge More Than 9% Since 2008″

All of these items look bad on TV and allow the talking heads to look gravely concerned and talk in somber tones before switching over to sports and weather. But what is the true situation on the ground?

The reality is that for most people life is proceeding as normal. There is an added air of caution with major expenditures, but that is not so unusual. Germany has been through a number of ups and downs economically over the years and so caution is a natural part of the pattern.

Additionally, while things are slowing globally, the German economy is on an upswing overall. Yes, this quarter or even this year may not deliver outstanding growth of the kind the stockbrokers want. But, compared to past years things are still following a general uptrend.

For example, if you look back to the time when the Wall came down, unemployment rates were around 15%, especially in the North East of the country. Now, the national rates are 9.6%. This is an remarkable improvement, although American and British analysts react to the number with shock because they come from a different perspective. ;-)

Further, 72% of the German working age population works. By way of comparison, in the US, only 66% of the working age population works, even though they have a lower official unemployment rate.

So you see, numbers are still relative.

Thus, moving around and doing business in Germany you will still find a strong economy and bustling trade. You shouldn’t feel as though there is a major economic crisis about to end the world at any time. Instead, enjoy Germany’s fine infrastructure, well-ordered business life and beautiful scenery! :-)

—Marcus