1.

The phenomenon of the development of a new economic model, called the German
management model, was observed in Germany in 1946-1951. Also under L. Erhard
administration monetary and economic reforms were made.
Later, the rapid development of the German economy was called «The economic miracle of
the 20th century».

2. The main characteristic features of the German economy

• The securing of full employment of the population
• Social security, justice and progress

3. Why is German economy is so strong? The German economy has its great innovativeness
and strong focus on exports to thank for its competitiveness and global networking. In high-
selling sectors, such as car-making, mechanical and plant engineering, the chemicals
industry and medical technology, exports account for well over half of total sales.

4. Germany is not only regarded as the country of great innovations in green

technologies. In a globalised world, a country’s innovative strength is crucial if it is
to remain one of the global players. To achieve this capacity for innovation,
Germany’s researchers and engineers have to be creative in developing and bold in
implementing ideas.
But the lack of up-and-coming qualified workers is an obstacle. In order to further
strengthen its ability to innovate, Germany is therefore partly dependent on the
immigration of highly qualified professionals. In short: smart people are important
now and will continue to be so in the future, regardless of whether they come from
Germany or from far away.

5. About tax system

Germany has a varied tax system, with taxes imposed at the national, state, and local levels.
Because of the generous system of social services, tax rates on corporations, individuals,
and goods and services are all relatively high in comparison with other countries. Germany
employs a system of tax equalization, through which tax revenues are distributed from
wealthier regions to less-prosperous ones. After unification these transfers were resented
among many western Germans.

6. Hopes of a rapid economic recovery in Germany have been disappointed – not

least due to the third wave of the coronavirus pandemic, which forcibly delayed plans
to open up the economy in the spring. At the same time, the German economy
continues to struggle with the last year production problems.