Germany's GDP is expected to slow in 1999 to approximately 1.8% on $2.3 trillion. Per capita income in the country with a population of 83.3 million is $26,355.

One-fifth of Germans are over 60 years old and account for 19% of GDP. This will change by 2035 if the standard of living is maintained, for the over 60 group will account for 33% of GDP. Germany's assets in pension funds in 1995 was 5.8% and growing at annual rate of 25% each year (this compares with 61% in the United States and 80% in the United Kingdom).

Germany's car market is the largest in Europe, with a total fleet of almost 43 million units. The demand for cars in 1998 reached approximately 3.8 million. Volkswagen dominates the market with an estimated 30% share (including Audi, Skoda, and Seat vehicles). Opel and Saab hold a second-place position, with approximately 18% market share.

In 1992, the unification of East and West Germany caused an increase in production to a record 4.9 million units. However, production dropped but has started to come back to 4.7 million units in 1997 and to 4.8 million in 1998, with a larger decrease to 4.4 million units expected in 2000. This trend owes to high labor cost and manufacturers looking for other labor markets and bigger margins. The German labor unions continue to resist any vehicle production to move out of the country.

Passenger Car Production (thousands of units)

Manufacturer 1998 2000 Volkswagen 1825 1795 GM 1100 1000 Mercedes-Benz 700 700 BMW 585 560 Ford 560 520 Porsche 30 25 Total 4800 4600

Country profiles were provided by Raymond Champagne