n Francisco, Seattle

Diplomatic representation from the US:
chief of mission: Ambassador John C. KORNBLUM
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

@Germany:Economy

Economy-overview: In 1997 the German economy, the world's third most
powerful, benefited from robust exports, particularly to other members
of the EU and the US, as well as strengthening equipment investment.
But anemic private consumption and a contraction in the construction
industry limited the expansion. Unemployment continued to set post-war
monthly records through the end of 1997 and averaged 4.3 million for
the year. In preparation for the 1 January 1999 start of the European
Monetary Union, the government has made major efforts in 1996-97 to
reduce the fiscal deficit. This effort has been complicated by growing
unemployment, an erosion of the tax base, and the continuing transfer
of roughly $100 billion a year to eastern Germany to refurbish this
ex-communist area. In recent years business and political leaders have
become increasingly concerned about Germany's decline in
attractiveness as an investment target. They cite increasing
preference by German companies to locate new manufacturing facilities
in foreign countries, including the US, rather than in Germany, to be
closer to the markets and to avoid Germany's high tax rates, high wage
costs, rigid labor structures, and extensive regulations. For similar
reasons foreign investment in Germany has been lagging in recent
years.

GDP: purchasing power parity-$1.74 trillion (western: purchasing power
parity-$1.60 trillion; eastern: purchasing power parity-$144 billion)
(1997 est.)

GDP-real growth rate: 2.4% (western 2.5%, eastern 1.7%) (1997 est.)

GDP-per capita: purchasing power parity-$20,800 (western: purchasing
power parity - $23,600; eastern: purchasing power parity-$9,100) (1997
est.)

GDP-composition by sector:
agriculture: 1.1%
industry: 34.5%
services: 64.4% (1995)

Inflation rate-consumer price index: 1.8% (1997)

Labor force:
total: 38.7 million
by occupation: industry 41%, agriculture 3%, services 56% (1995)

Unemployment rate: 12% (1997 est.)

Budget:
revenues: $755 billion
expenditures: $832