outerwear germany 2 1 general economic situation s affluent and technolo gically powerful economy the fifth largest in world has become one of slowest gro wing economies euro zone switzerland a quick turna round is not foreseeable immediate future growth 2001 03 was under rising to 7 2004 modernization integration eastern german continues be costly long term process with annual transfers from west east amounting roughly 70 billion aging population combined high unemploy ment pushed social security outlays level exceeding con tributions workers structural rigidities labour market including strict regulations on lay ing off setting wages national basis have made unemployment chronic problem corporate restructuring growing capital markets are foundations that could allow meet challenges european eco nomic globalizati particularly if further addressed short run however fall government revenues rise expenditures raised deficit above eu 3
