GermanStockFund.com

German-Stock-Fund

The Frankfurt Stock Exchange, located in Frankfurt, Germany, is one of the largest in the world.  It accounts for the large majority of stock transactions in the German stock market and a large percentage of the overall European market.  The European Central Bank is also located in Frankfurt, Germany.

German Stocks

DEUTSCHE BANK AG  (DTBKY)

SIEMENS AG   (SMAWY)

VOLKSWAGEN AG  (VLKAY)

German Mutual Funds

iShares MSCI-Germany (EWG)

Germany Fund Inc.(GER)

New Germany Fund Inc.(GF)

Germany Fund Inc.       (XGERX)

New Germany Fund Inc. (XGFNX)

German Economy and Stock Market Info

The German economy – the fifth largest economy in the world in PPP terms and Europe’s largest – is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country’s social welfare system and necessitate structural reforms. The modernization and integration of the eastern German economy – where unemployment can exceed 20% in some municipalities – continues to be a costly long-term process, with annual transfers from west to east amounting in 2008 alone to roughly $12 billion. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment, which in 2008 reached a new post-reunification low of 7.8%. These advances, as well as a government subsidized, reduced working hour scheme, have helped to explain the relatively modest increase in unemployment during Germany’s 2008-09 recession – the deepest since World War II. GDP grew just over 1% in 2008 and contracted roughly 5% in 2009. Germany crept out of recession in the second and third quarters of 2009, thanks largely to rebounding manufacturing orders and exports – primarily outside the Euro Zone – and relatively steady consumer demand. The German economy probably will recover to about 1.5% growth for the year 2010. However, a relatively strong euro, tighter credit markets, and an anticipated bump in unemployment could cloud Germany’s medium-term recovery prospects. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL’s second term will increase Germany’s record budget deficit, which is expected to exceed 5% of GDP in 2010. The EU has given Germany until 2013 to get its consolidated budget deficit below 3% of GDP. A new constitutional amendment likewise limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016.   Source : CIA Factbook

 

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