[1] (202) 298-4249
consulate(s) general: Atlanta, Boston, Chicago, Detroit, Houston, Los
Angeles, Miami, New York, San Francisco, Seattle
consulate(s): Wellington (American Samoa)

Diplomatic representation from the US:
chief of mission: Ambassador (vacant); Charge d'Affaires James D.
BINDENAGEL
embassy : Deichmanns Aue 29, 53170 Bonn
mailing address: APO AE 09080, PSC 117, Bonn
telephone: [49] (228) 3391
FAX: [49] (228) 339-2663
branch office : Berlin
consulate(s) general: Dusseldorf, Frankfurt am Main, Hamburg, Leipzig,
Munich

Flag description: three equal horizontal bands of black (top), red,
and gold

Economy

Economy - overview: Germany, the world's third-most powerful economy,
is gearing up for the European Economic and Monetary Union in 1999.
One key economic priority is meeting the Maastricht criteria for entry
into EMU, a goal complicated by record unemployment and stagnating
growth. The government has implemented an austerity budget in its
attempt to get the deficit down to 3% of GDP as required by
Maastricht, but further cuts probably will be necessary and there is
little consensus among the parties or elites about next steps toward
that end. In recent years business and political leaders have become
increasingly concerned about Germany's apparent decline in
attractiveness as a business location. They cite the increasing
preference of German companies to locate new manufacturing facilities
- long the strength of the postwar economy - in foreign countries,
including the US, rather than in Germany, so they can be closer to
their markets and avoid Germany's high taxes and labor costs. At the
same time, Germany faces its own unique problem of bringing its
eastern area up to scratch after 45 years of communist rule. Despite
substantial progress toward economic integration, the eastern states
will continue to rely on the annual subsidy of approximately $100
billion from the western part into the next century. Assistance from
the west helped the east to average nearly 8% annual economic growth
in 1992-95, even though the overall German economy had averaged less
than 2% growth; growth in the east, however, tumbled to 2% in 1996,
with unemployment a particularly severe problem.

GDP: purchasing power parity - $1.7 trillion (western: purchasing
power parity - $1.56 trillion; eastern: purchasing power parity - $142
billion) (1996 est.)

GDP - real growth rate: 1.4% (western 1.3%, eastern 2.0%) (1996)

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