Forex is an economic miracle that has imposed itself firmly in the world
Germany emerged from World War II as a devastated, divided and economically exhausted country, but in a short time it managed to rise again to become one of the most important global economic Forex drivers.
We cannot talk about the economic Forex without mentioning the German economy,
which was able in a short period of time to rise and be among the largest economies in the world.
- Forex The German economy today exceeds four trillion dollars, making it the largest economy in Europe and the fourth largest in the world with about 5 percent of global GDP.
At the same time, the German market is the largest Forex market in Europe, with nearly 83 million consumers, which is equivalent to 16 percent of the European Union’s population. It is home to about three and a half million companies with annual revenues exceeding the seven trillion dollar barrier.
- The superiority of the German economy appears more on the Forex side. Germany is the third largest exporter of goods in the world after China and the United States, and the volume of its exports last year exceeded the one trillion mark and 560 billion dollars in 2018, equivalent to eight percent of the volume of global exports.
The large volume of exports is due to the role of the industrial sector, which constitutes about 31 percent of the economy,
which is one of the highest percentages recorded in advanced economies, while German industrial companies constitute about 10 percent of European companies operating in the Forex sector.The automotive sector is at the forefront of Forex activities in Germany, with annual revenues exceeding $400 billion, and accounting for 21 percent of total global auto exports.
- Economic growth occupies an important place on the economic level, and is even considered one of the most important macroeconomic goals that it aims to achieve through policy-making and taking the necessary measures for this, but it is often unsustainable growth under the rule of rentier economy.
Before explaining the fragility of economic growth in the rentier economy, it is necessary at the outset to clarify what is meant by economic growth and what is meant by the rentier economy, and then to clarify the fragility of economic growth in the rentier economy, as dealing with Forex directly and suddenly without clarifying its main pillars will cause the reader to confuse understanding Subject.
Economic growth is defined as “the long-term steady increase in per capita real income. If per capita income increases after the Forex is released from depression, the increase is considered cyclical and not steady. Hence, this is not considered economic growth.”
It is also defined as “the increase in gross domestic product, which means the total production of goods and services produced by a society during a certain period of time, usually the Forex.”
From the above two definitions, some Forex related to economic growth can be fixed below:
First, the increase.
That is, there must be an increase in the gross domestic product that is greater than the increase in the population, as there may be an increase in the output corresponding to the increase in the size of the population, and the economic growth will disappear.
That is, the increase in GDP is not sufficient for economic growth to be achieved, but continuity must coincide with this increase and for a long period.
That is, economic growth must be based on Forex diversification, as it cannot be achieved in the long term by relying on one sector, especially if this sector is rentier.
The gross domestic product is mostly classified into three main categories: the commodity sectors, which include the agriculture, fishing and forestry sector,
the mining and extractive Forex sector, the manufacturing sector, the electricity, water and gas sector, and the construction sector, and the distributive sectors, which include the trade, restaurants and Forex sector, and the transportation sector. Transportation, warehousing, financial institutions and warehousing sector, and service sectors that include the housing sector, government services sector and other services sector.
- When calculating the gross domestic product, it is necessary to collect the goods and services produced by those sectors during a certain period of time. Certainly, the size of the Forex varies from one sector to another according to the priorities set by the state and according to the political, economic, social and other conditions, and that the failure to develop a plan to determine the priorities and the percentages of the economic sectors’ contribution to the gross domestic product will result in a vast disparity, and this leads to the imbalance of the economy and hence the fragility of its growth, as it is The case of most rentier countries.
The rentier economy and its characteristics Forex
There is a difference between the rentier state and the rentier economy. The state considers the Forex rentier whenever its budget depends heavily on rent, and vice versa, and when the economy depends in most of its indicators on rent, it is a rentier economy,
- and the opposite is also true. There is a wide debate about which of them generates the other, some see the rentier state producing the rentier economy and others see the rentier economy producing the rentier state, and apart from this controversy, there is almost unanimity about their source, meaning that their source is external rent, the state and the economy become rentier when they depend on External rent, and therefore they will be addressed together as a result and not as a mechanism.
The rentier Forex has several features that can be briefly addressed as follows:
the Forex economy
That is, it is an economy that lacks economic diversification and depends on one sector in financing the economy, which is the rentier sector.
Second: the country’s economy, Forex
In other words, it is the state that dominates the Forex by virtue of its dominance over.