This is due to a number of factors. First, enterprises have brought their costs under control, their debt level is not unreasonably high, and they have an attractive range of products to offer on global markets, including Turkey. Second, the German economy is being supported by domestic consumption, while investment remains subdued – I will come back to this issue in a moment.
In addition, unemployment is low, households are not burdened by excessive debt and real wages are rising on account of low inflation. As reported by the Federal Statistical Office, the German economy grew by 1.5% in real terms in 2014.