The country chosen for analysis is Germany. The country’s GDP was determined to be growing as determined by its growth rate and GDP values over the years. The GDP growth rate was 2.23%, 2.6%, 1.27%, and 0.27% for the years 2016, 2017, 2018, and 2019. The value for the annual GDP was 3.467 trillion in 2016, and it increased to 3.861 trillion in 2019 (“GDP (current US$) – Germany”, 2021). The events in the country that have resulted in the growing GDP are high industrialization, high exportation, and well-performing enterprises. Germany’s industry sectors like electric industry, engineering, vehicle construction, and chemical industry all make up 22.9% of its GDP (Bartels, 2019). Germany is also one of the leading exporting nations in the world. The country has well-performing medium-sized enterprises. Most of the companies have less than 500 employees and have a turnover of more than 50 million euros (Bosch, 2018). The result of high industrialization and well-performing businesses is a high employment rate that further drives the GDP upwards.
Businesses can use the analysis of the GDP of Germany to decide whether they should expand their business operations or not. A business in Germany that analyzes the GDP will determine that the economy is growing and people are spending more money. Businesses should thus decide to expand further and hire more people. It can also choose to engage in more aggressive marketing as the growing GDP shows that people are likely to be earning and spending more (Milan & Sufi, 2018). In case a business did not consider the actual values and growth of the GDP, it may make an error by downsizing its business operations and fail to tap into the growing consumer spending. The business could lose the opportunity to expand, realize growth in sales and revenues, and also grow its profits.
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References
Bartels, C. (2019). Top incomes in Germany, 1871–2014. The Journal of Economic History , 79 (3), 669-707.
Bosch, G. (2018). 4. The Changing Nature of Collective Bargaining in Germany: Coordinated Decentralization. The New Structure of Labor Relations (pp. 84-118). Cornell University Press.
GDP (current US$) – Germany. (2021). World Bank. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=DE
Mian, A., & Sufi, A. (2018). Finance and business cycles: the credit-driven household demand channel. Journal of Economic Perspectives , 32 (3), 31-58.
