Germany is one of the world's most experienced market economies. It is the world's third largest economy in USD exchange-rate terms, the fifth largest by purchasing power parity (PPP), and the largest economy in Europe.
Germany uses the common European currency, the euro, and its monetary policy is set by the European Central Bank in Frankfurt, Germany. The German economy is heavily export-oriented. German exports accounting for more than one-third of national output. As a result, exports traditionally have been a key element in German macroeconomic expansion. Germany is a strong advocate of closer European and worldwide economic and political integration, and its economic and commercial policies are increasingly determined by agreements among European Union (EU) members and EU single market legislation.