The report compares the economic structures of Germany and the USA in industry, the digital economy, and healthcare expenditures.
The economic structures of Germany and the USA show fundamental differences in the composition of their Gross Domestic Products (GDP), which have profound effects on their economic resilience and future development paths. This report analyzes the shares of traditional industry, the digital economy, and the healthcare sector in the overall economic performance of both countries, with particular regard to the deindustrialization debate and systemic differences in healthcare.
Industrial Value Creation in Comparison
Germany: Stable Industrial Core Despite Structural Challenges
Germany's manufacturing industry accounted for 26.6% of gross value added in 2021 – a figure that has remained remarkably stable since the 1990s (23.0% in 1994; 22.3% in 2014) 1 8. With a turnover of 2.096 billion euros (2020), the automotive industry dominates (459 billion euros), followed by mechanical engineering, chemistry, and electrical engineering 8. This industrial core forms the backbone of export orientation, but at the same time, it makes Germany vulnerable to global supply chain disruptions and energy policy upheavals 5.
Despite the narrative of 'deindustrialization', the data does not show an abrupt decline, but rather a gradual structural change: The production index for energy-intensive sectors fell by 1.5% from 2018–2023, while knowledge-based industries such as pharmaceuticals (+4.2%) and electromobility (+8.9%) grew 5. Industrial value added in 2023 amounted to 738 billion euros (21.8% of the GDP of 3,386 billion euros) 13, with significant regional disparities – Bavaria (666 billion euros GDP 2022) and Baden-Württemberg (539 billion euros) account for 33% of industrial value added 13.
USA: Service Dominance with Innovation-Driven Industry
The US industrial sector contributes 17.8% to gross value added (2023: 4,803 billion USD from 27,000 billion USD GDP) 2. The automotive (Ford, GM, Tesla), aerospace (Boeing), and tech industries (semiconductors, AI) generate 62% of industrial output. However, stagnation has been evident since 2020: Industrial production grew by only 1.2% in 2023, while the number of industrial employees fell to 14.8 million (-3.4% since 2018) 2.
The supposed decline is put into perspective in the global context: With a 17.8% industry share, the USA is well ahead of France (11.4%) and the UK (9.4%) 1, but behind Germany (26.6%) and Japan (29.0%) 8. The current crisis is less structural than cyclical – high interest rates (5.25% Federal Funds Rate), supply bottlenecks, and energy costs particularly burden SMEs, which make up 99% of US companies 2.
Digital Economy: Measurement Issues and Hidden Value Creation
Germany: Undervalued Potential
Officially, the digital economy contributes 5.4% to German GDP (185 billion euros in 2023) 3. However, this figure underestimates the transformative effect of digital technologies on traditional industries. McKinsey studies show that full digitalization of German industry could increase GDP growth by 1% per year (+500 billion euros cumulative until 2025) 3. Barriers include insufficient network coverage (only 92% 4G availability vs. 98% EU average) and regulatory hurdles in data usage 3.
USA: Consumption-Driven Digital Value Creation
The US information sector generates 4–5% of GDP (1,350 billion USD), but indirect effects from platform economies (Amazon, Google, Meta) skew statistics 4. The average American spends 6.3 hours daily with digital media – a figure not reflected in traditional GDP calculations but generating real welfare gains 4. The tech industry employs 12.7 million people (7.6% of jobs) and invested 327 billion USD in R&D in 2023 2.
Paradoxically, the GDP success metric hinders capturing digital value creation: Free services like open-source software or user-generated content (300 billion USD value creation 2023) do not flow into the national accounts 4. This partly explains why US GDP per capita ($80,400 PPP adjusted) is only 21% above Germany ($64,000), despite significantly higher digital penetration 2 17.
Healthcare Sector: System Differences and Economic Impact
Germany: Social Welfare-Based Basic Provision
The German healthcare system (first healthcare market) comprises 12.8% of GDP (498 billion euros 2022), funded through social security contributions (76%), taxes (11%), and private co-payments (13%) 14 19. Statutory health insurance (GKV) covers 89% of the population, while 11% are privately insured 6.
The second healthcare market (privately financed services) amounted to 67.9 billion euros in 2022 (1.9% of GDP), with fitness (23 billion €), wellness (18 billion €), and health apps (9.4 billion €) representing the largest segments 12 16. Despite demographic changes (23% over 65s by 2030), cost dynamics remain moderate (+3.2% p.a. 2010–2022) 14.
USA: Market-Driven Growth with Inefficiencies
With a 16.6% GDP share (4,492 billion USD 2023), the USA is the global leader in healthcare spending 7 11. The system combines private insurance (55%), government programs (Medicare/Medicaid: 34%), and self-payers (11%) 7. Per capita spending is $10,348 – 140% above the OECD average 11.
However, structural problems reduce efficiency:
9% of the population (29.6 million) are uninsured, 33% underinsured 7
Administrative costs account for 8% of expenditures vs. 3% in Germany 19
Life expectancy is 76.4 years (Germany: 81.2) despite higher spending 17
The second healthcare market is booming (wellness: 186 billion USD, telemedicine: 79 billion USD 2023), benefiting from tax incentives (HSAs) and growing middle-class demand 18.
Macroeconomic Interdependencies
The industrial base of Germany correlates negatively with healthcare spending (-0.72 correlation 2000–2023), while in the USA both sectors grow in parallel (+0.63) 5 10. The cause is the different financing logics:
The absolute discrepancy highlights the different economic models: While Germany's GDP is only 12.2% of the US value, per capita performance in healthcare (5,939 € vs. 10,348 $) and industry (8,912 € vs. 14,230 $) are within comparable dimensions 14 2 10.
Conclusion: Structural Change Instead of Deindustrialization
The data refute sweeping deindustrialization theses: Germany maintains its industrial core through specialization and export orientation, while the USA focuses on services and high technology. Digitalization remains statistically under-captured in both countries, but fundamentally changes real production processes.
In the healthcare sector, systemic differences become evident: Germany's welfare state model achieves better outcomes at lower costs, while the US market fosters innovation but produces massive inefficiencies. For the future, it is essential to make industrial value chains more resilient through digitalization, while at the same time curbing the cost explosion in healthcare – a dual challenge requiring national solutions.
