GDP (gross domestic product)

GDP (German: BIP, Bruttoinlandsprodukt) measures a country's total economic output – the value of all goods and services produced in a year.

Germany 2025:

• GDP: approx. 4.1 trillion euros
• World ranking: 3rd place (after the USA and China, ahead of Japan since 2023)
• Per capita: approx. €48,000 (19th worldwide – in 1995 it was still 9th!)
• Growth 2025: approx. +0.2% (weak, after −0.3% in 2023)

Composition:

• Services: ~69% (IT, finance, health, retail)
• Industry: ~27% (cars, mechanical engineering, chemicals – higher than in most developed countries)
• Agriculture: ~1%

Why GDP matters:

• Economic growth: GDP grows = more jobs, higher wages, more tax revenue
• Recession: GDP shrinks 2 quarters in a row = official recession
• Public debt: measured as a percentage of GDP (Germany: approx. 63%)

Criticism of GDP:

• Doesn't measure prosperity, health, environment or happiness
• Unpaid work (raising children, volunteering) isn't counted
• Environmental destruction increases GDP (clean-up costs after a flood!)
• Alternatives: Human Development Index (HDI), happiness index, GDP per capita at purchasing power parity