The average annual salary for an electrical engineer in Germany was €41,000 ($45,000) in 2019. Electrical engineers with a bachelor’s degree in the field can expect to start out earning around €25,000 ($27,000) per year, while those with a master’s degree will make about €33,000 ($35,400).
The average hourly wage for electrical engineers was €23.14 ($24.60) as of May 2011.
Electrical Engineering Salary In Germany
The economy of Germany is a highly developed social market economy.[20] It has the largest national economy in Europe, the fourth-largest by nominal GDP in the world, and fifth by GDP (PPP). In 2017, the country accounted for 28% of the euro area economy according to the International Monetary Fund (IMF).[21] Germany is a founding member of the European Union and the Eurozone.[22][23]
In 2016, Germany recorded the highest trade surplus in the world, worth $310 billion.[24] This economic result made it the biggest capital exporter globally.[25] Germany is one of the largest exporters globally with $1810.93 billion worth of goods and services exported in 2019.[26][27] The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Exports accounted for 41% of national output.[28][needs update][29] The top 10 exports of Germany are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics.[30] The economy of Germany is the largest manufacturing economy in Europe, and it is less likely to be affected by a financial downturn.[31] Germany conducts applied research with practical industrial value and sees itself as a bridge between the latest university insights and industry-specific product and process improvements. It generates a great deal of knowledge in its own laboratories.[32]
Germany is rich in timber, lignite, potash and salt. Some minor sources of natural gas are being exploited in the state of Lower Saxony. Until the German reunification, the German Democratic Republic mined for uranium in the Ore Mountains (see also: SAG/SDAG Wismut). Energy in Germany is sourced predominantly by fossil fuels (30%), with wind power in second place, then nuclear power, gas, solar, biomass (wood and biofuels) and hydro.[33] Germany is the first major industrialized nation to commit to the renewable energy transition called Energiewende. Germany is the leading producer of wind turbines in the world.[34] Renewables produced 46% of electricity consumed in Germany (as of 2019).[35] 99 percent of all German companies belong to the German “Mittelstand,” small and medium-sized enterprises, which are mostly family-owned. Of the world’s 2000 largest publicly listed companies measured by revenue, the Fortune Global 2000, 53 are headquartered in Germany, with the Top 10 being Allianz, Daimler, Volkswagen, Siemens, BMW, Deutsche Telekom, Bayer, BASF, Munich Re and SAP.[36]
Germany is the world’s top location for trade fairs.[37] Around two thirds of the world’s leading trade fairs take place in Germany.[38] The largest annual international trade fairs and congresses are held in several German cities such as Hanover, Frankfurt, Cologne, Leipzig and Düsseldorf.
Contents
- 1History
- 2Data
- 3Economic region
- 4Sectors
- 5Government finances
- 6Infrastructure
- 7Technology
- 8Challenges
- 9See also
- 10References
- 11Notes
- 12Further reading
- 13External links
History[edit]
Main article: Economic history of Germany
Real GDP per capita development in Germany since 1820
Age of Industrialization[edit]
Main article: Industrialization in Germany
The Industrial Revolution in Germany got underway approximately a century later than in the United Kingdom, France, and Belgium, partly because Germany only became a unified country in 1871.[39]
- Train factory of August Borsig in 1847.
- Many companies, such as steam-machine producer J. Kemna, modeled themselves on English industry.
- The invention of the automobile. Bertha Benz and Karl Benz in a Benz Viktoria, model 1894.
- The invention of the cruise ship. Albert Ballin‘s SS Auguste Viktoria in 1890.
- Railway construction as an expression of the industrial revolution (here the Bonn-Cölner railway around 1844)
The establishment of the Deutscher Zollverein (German Customs Union) in 1834 and the expansion of railway systems were the main drivers of Germany’s industrial development and political union. From 1834, tariff barriers between increasing numbers of the Kleindeutschland German states were eliminated.[citation needed] In 1835 the first German railway linked the Franconian cities of Nuremberg and Fürth – it proved so successful that the decade of the 1840s saw “railway mania” in all the German states. Between 1845 and 1870, 8,000 kilometres (5,000 mi) of rail had been built and in 1850 Germany was building its own locomotives. Over time, other German states joined the customs union and started linking their railroads, which began to connect the corners of Germany. The growth of free trade and a rail system across Germany intensified economic development which opened up new markets for local products, created a pool of middle managers,[clarification needed] increased the demand for engineers, architects, and skilled machinists, and stimulated investments in coal and iron.[40]
Another factor that propelled German industry forward was the unification of the monetary system, made possible in part by political unification. The Deutsche Mark, a new monetary coinage system backed by gold, was introduced in 1871. However, this system did not fully come into use as silver coins retained their value until 1907.[41]
The victory of Prussia and her allies over Napoleon III of France in the Franco-Prussian War of 1870-1871 marked the end of French hegemony in Europe and resulted in the proclamation of the German Empire in 1871. The establishment of the empire inherently presented Europe with the reality of a new populous and industrializing polity possessing a considerable, and undeniably increasing, economic and diplomatic presence. The influence of French economic principles produced important institutional reforms in Germany, including the abolition of feudal restrictions on the sale of large landed estates, the reduction of the power of the guilds in the cities, and the introduction of a new, more efficient commercial law. Nonetheless, political decisions about the economy of the empire were still largely controlled by a coalition of “rye and iron”, that is the Prussian Junker landowners of the east and the Ruhr heavy industry of the west.[42]
Regarding politics and society, between 1881 and 1889 Chancellor Otto von Bismarck promoted laws that provided social insurance and improved working conditions. He instituted the world’s first welfare state. Germany was the first to introduce social insurance programs including universal healthcare, compulsory education, sickness insurance, accident insurance, disability insurance, and a retirement pension. Moreover, the government’s universal education policy bore fruit with Germany achieving[when?] the highest literacy rate in the world – 99% – education levels that provided the nation with more people good at handling numbers, more engineers, chemists, opticians, skilled workers for its factories, skilled managers, knowledgeable farmers, and skilled military personnel.[43]
By 1900 Germany surpassed Britain and the United States in steel production. The German economic miracle was also intensified by unprecedented population growth from 35 million in 1850 to 67 million in 1913. From 1895 to 1907, the number of workers engaged in machine building doubled from half a million to well over a million. Only 40 percent of Germans lived in rural areas by 1910, a drop from 67% at the birth of the Empire. Industry accounted for 60 percent of the gross national product in 1913.[44] The German chemical industry became the most advanced in the world, and by 1914 the country was producing half the world’s electrical equipment.
The rapid advance to industrial maturity led to a drastic shift in Germany’s economic situation – from a rural economy into a major exporter of finished goods. The ratio of the finished product to total exports jumped from 38% in 1872 to 63% in 1912. By 1913 Germany had come to dominate all the European markets. By 1914 Germany had become one of the biggest exporters in the world.[45]
Weimar Republic and Third Reich[edit]
Main article: Economy of Nazi Germany
Gross national product and GNP deflator, year on year change in %, 1926 to 1939, in Germany. Via google to Pdf-file of German publication.
The Nazis rose to power while unemployment was very high,[46] but achieved full employment later thanks to massive public works programs such as the Reichsbahn, Reichspost and the Reichsautobahn projects.[47] In 1935 rearmament in contravention of the Treaty of Versailles added to the economy.[46]
Weimar and Nazi Germany By Stephen J. Lee[48]
The post-1931 financial crisis economic policies of expansionary fiscal policies (as Germany was off the gold standard) was advised by their non-Nazi Minister of Economics, Hjalmar Schacht,[46] who in 1933 became the president of the central bank. Hjalmar Schacht later abdicated from the post in 1938 and was replaced by Hermann Göring.
The trading policies of the Third Reich aimed at self-sufficiency but with a lack of raw materials Germany would have to maintain trade links but on bilateral preferences, foreign exchange controls, import quotas, and export subsidies under what was called the “New Plan”(Neuer Plan) of 19 September 1934.[49] The “New Plan” was based on trade with less developed countries who would trade raw materials for German industrial goods saving currency.[50] Southern Europe was preferable to Western Europe and North America as there could be no trade blockades.[51] This policy became known as the Grosswirtschaftsraum (“greater economic area”) policy.
Eventually, the Nazi party developed strong relationships with big business[52] and abolished trade unions in 1933 in order to form the National Labor Service (RAD), German Labor Front (DAF) to set working hours, Beauty of Labour (SDA) which set working conditions and Strength through Joy (KDF) to ensure sports clubs for workers.[53]
West Germany[edit]
See also: Wirtschaftswunder
The Volkswagen Beetle was an icon of West German reconstruction.
Beginning with the replacement of the Reichsmark with the Deutsche Mark as legal tender, a lasting period of low inflation and rapid industrial growth was overseen by the government led by German Chancellor Konrad Adenauer and his minister of economics, Ludwig Erhard, raising West Germany from total wartime devastation to one of the most developed nations in modern Europe.
In 1953 it was decided that Germany was to repay $1.1 billion of the aid it had received. The last repayment was made in June 1971.
Apart from these factors, hard work and long hours at full capacity among the population in the 1950s, 1960s, and early 1970s and extra labor supplied by thousands of Gastarbeiter (“guest workers”) provided a vital base for the economic upturn.
Main article: Economy of the German Democratic Republic
By the early 1950s, the Soviet Union had seized reparations in the form of agricultural and industrial products and demanded further heavy reparation payments.[54] Silesia with the Upper Silesian Coal Basin, and Stettin, a prominent natural port, were lost to Poland.
Exports from West Germany exceeded $323 billion in 1988. In the same year, East Germany exported $30.7 billion worth of goods; 65% to other communist states.[55] East Germany had zero unemployment.[
As of 2013, Germany is the third-largest exporter and third-largest importer in the world, producing the largest trade surplus as a national economy.
The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%) and in 2005 (+1.4%).[56] Unemployment was also chronically high.[57] Due to these problems, together with Germany’s aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging program of belt-tightening reforms, Agenda 2010, including the labor market reforms known as Hartz I – IV.[57]
In the later part of the first decade of 2000, the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living and that its effects are limited and temporary.[57]
The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle.[58] German industrial output dropped to 3.6% in September vis-à-vis August.[59][60] In January 2009 the German government under Angela Merkel approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates.[61] Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports – primarily from outside the Euro Zone – and relatively steady consumer demand.[57]
Germany is a founding member of the EU, the G8 and the G20, and was the world’s largest exporter from 2003 to 2008. In 2011 it remained the third largest exporter[62] and third largest importer.[63] Most of the country’s exports are in engineering, especially machinery, automobiles, chemical goods and metals.[64] Germany is a leading producer of wind turbines and solar-power technology.[65] Annual trade fairs and congresses are held in cities throughout Germany.[66] 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.[67]
Through 2012, Germany’s economy continued to be stronger relative to local neighboring nations.[68]
The following table shows the main economic indicators in 1980–2020 (with IMF staff estimtates in 2021–2026). Inflation below 2% is in green. [69]
| Year | GDP(in Bil. US$PPP) | GDP per capita(in US$ PPP) | GDP(in Bil. US$nominal) | GDP per capita(in US$ nominal) | GDP growth(real) | Inflation rate(in Percent) | Unemployment(in Percent) | Government debt(in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 855.3 | 11,130.4 | 853.7 | 11,109.7 |  1.3% |  5.4% | 3.4% | n/a |
| 1981 | 937.2 | 12,174.0 |  718.3 | 9,329.6 | 0.1% | 6.3% | 4.8% | n/a |
| 1982 | 987.3 | 12,833.5 | 693.5 | 9,015.0 | -0.8% | 5.3% | 6.7% | n/a |
| 1983 | 1,041.9 | 13,590.8 | 691.9 | 9,025.2 | 1.6% | 3.3% | 8.1% | n/a |
| 1984 | 1,110.0 | 14,537.9 | 651.9 | 8,537.8 | 2.8% | 2.4% |  8.1% | n/a |
| 1985 | 1,170.2 | 15,364.3 | 661.0 | 8,678.9 | 2.2% | 2.1% |  8.1% | n/a |
| 1986 | 1,222.7 | 16,041.5 | 944.1 | 12,387.0 | 2.4% | -0.1% | 7.8% | n/a |
| 1987 | 1,271.3 | 16,676.8 | 1,174.9 | 15,411.5 | 1.5% | 0.2% | 7.8% | n/a |
| 1988 | 1,365.3 | 17,801.4 | 1,266.6 | 16,514.7 | 3.7% | 1.3% | 7.7% | n/a |
| 1989 | 1,474.4 | 19,033.2 | 1,257.4 | 16,232.1 | 3.9% | 2.8% | 6.8% | n/a |
| 1990 | 1,617.1 | 20,482.9 | 1,598.6 | 20,249.1 | 5.7% | 2.7% | 6.2% | n/a |
| 1991 | 1,755.6 | 21,951.9 | 1,875.6 | 23,453.1 | 5.0% | 3.5% | 5.5% | 39.0% |
| 1992 | 1,830.0 | 22,733.4 | 2,136.3 | 26,538.0 | 1.9% | 5.0% | 6.6% | 41.5% |
| 1993 | 1,855.1 | 22,917.9 | 2,072.5 | 25,603.0 | -1.0% | 4.5% | 7.8% | 45.1% |
| 1994 | 1,940.2 | 23,909.5 | 2,209.9 | 27,233.6 | 2.4% | 2.7% | 8.4% | 47.5% |
| 1995 | 2,011.4 | 24,738.0 | 2,588.0 | 31,829.6 | 1.5% | 1.7% | 8.2% | 54.9% |
| 1996 | 2,064.9 | 25,347.1 | 2,498.1 | 30,664.4 | 0.8% | 1.3% | 8.9% | 57.8% |
| 1997 | 2,138.0 | 26,230.3 | 2,214.7 | 27,170.7 | 1.8% | 1.5% | 9.7% | 58.9% |
| 1998 | 2,205.8 | 27,082.8 | 2,242.1 | 27,528.2 | 2.0% | 0.6% | 9.4% | 59.5% |
| 1999 | 2,279.1 | 27,990.7 | 2,197.1 | 26,984.2 | 1.9% | 0.6% | 8.6% | 60.4% |
| 2000 | 2,398.4 | 29,443.7 | 1,948.8 | 23,924.9 | 2.9% | 1.4% | 8.0% | 59.3% |
| 2001 | 2,493.8 | 30,592.1 | 1,945.8 | 23,869.8 | 1.7% | 1.9% | 7.8% | 58.2% |
