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Germany GDP per capita remains among the highest in OECD countries. Labour force participation is high and unemployment is very low, but working hours are relatively short. Income inequality is lower than the OECD average. However, a high share of workers earns low wages, partly because many low-skilled workers and women work part-time. Fine particle concentrations remain high and CO2 emissions have fallen only slightly since 2013. The government has increased investment in childcare and education infrastructure. Contribution rates to the statutory pension have been reduced slightly. The government has pledged in its coalition agreement to reduce the tax burden and to strengthen childcare and lifelong education further. Reducing restrictive regulation in the professional services and government ownership in business sector activities would improve efficient resource allocation and technology diffusion. Lowering personal costs of bankruptcy for failed entrepreneurs and improving access to high speed Internet would enhance technology diffusion. Supporting middle-skilled workers to adapt to technology change through better access to training would promote inclusive growth. Increasing the supply of high-quality childcare and full-day schooling would allow women to work longer hours and narrow the large gender earnings gap. Investment in low-emission transport infrastructure reduces pollution and can help Germany meet its CO2 reduction target. Growth performance, inequality and environment indicators: Germany A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 1.6 0.9 0.9 0.2 -0.3 1.0 0.1 0.8 -0.2
2012-18 1.2 0.9 0.6 0.3 0.0 0.6 -0.2 0.8 -0.4
Level
Annual variation (percentage points)
2016 29.4 (31.7)*
2013-16 0.1 (0)*
8.2 (7.6)*
-0.1 (0)*
2016 10.9 (10.9)* 0.3 (0.3)* 1.9
Average of levels 2010-16 11.2 (11.3)* 0.3 (0.3)* 2.0
C. The gap in GDP per capita is relatively low Gap to the upper half of OECD countries5 Per cent 15 GDP per capita
GDP per hour worked
10
5
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
4
GHG emissions per capita (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
0
-5
-10
-15
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954914