Macro and Microeconomic Issues in Germany Economics Term Paper (Term Paper Sample)

Macro and Microeconomic Issues in Germany
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Macro and Microeconomic Issues in Germany
Introduction
Germany has for decades been one of the most influential member nations of the European Union on both the economic and political fronts. This position has been further extended by the current Chancellor, Angela Merkel, who has been highly influential in ensuring that the country continues to experience economic as well as political prosperity. Specifically, her open-door policy that has seen more than 2 million immigrants flow into the region since 2015 has gone a long way in fueling the state's economy using the provision of labor and increased market (Becker, Böttcher, Heymann, Möbert, & Schneider, 2018). With a nominal GDP of $4.211 trillion, it is the fourth largest economy in the world. Unlike many other European countries, In 2016 Germany had a trade surplus of $310 which was the highest trade surplus in the world. Furthermore, in the same year, Germany was the third largest exporter in the world behind China and US with its exports valued at $1.27 trillion. However, in 2017, Germany registered the second highest trade surplus despite an increase in exports by approximately 6.1% CITATION Bec18 \l 1033 (Becker, Bottcher, Heymann, Mobert, & SchneiderStefan, 2018). Therefore, Germany's economy can be considered a unique area of study majorly due to the fact that it is currently experiencing a slowdown due to a number of macroeconomic and microeconomic issues, with the most crucial ones being strained trade relations and harsh Euro 6 standards that negatively affect the production industry respectively.