General information
Over the past 50 years the economy changed from a colonial plantation economy to a subsidized consumer society. The island’s economy is mainly based on import and export agreements because of the geographical location of the island. Some goods cannot be grown or produced here as the climate is very special. Therefore the island is very dependent on imports.
Germany has one of the world’s largest and export-oriented economies, known for manufacturing, particularly in automobiles and machinery. It has a strong industrial base, a skilled workforce, and a focus on innovation. The Mittelstand, consisting of small and medium-sized enterprises, is a key driver. Germany follows a social market economy model and is a member of the Eurozone. Challenges include an aging population and the need for ongoing innovation to remain competitive.
Import/export rate
The island’s economy is mainly based on import and export agreements. The highest import rates are obviously from France. The mainly imported goods are vehicles, fuels, energy products and groceries that are not produced on the island. Reunion only exports around 2,000 tonnes of tropical fruits to the European Union, i.e. 1,500 tonnes of pineapples and 500 tonnes divided between mangoes, lychees and passion fruit. Finally, horticulture is an almost unorganized sector.
Germany is known for being one of the world’s leading exporters. The country has a diverse export portfolio that includes automobiles, machinery, chemicals, pharmaceuticals, medical equipment, and various manufactured goods. The automotive industry, with companies like Volkswagen, BMW, and Mercedes-Benz, is a significant contributor to Germany’s export economy.
The unemployment rate
The Réunion Island has a high unemployment rate, which is even higher when you focus on the youth. The overall unemployment rate is 30%, whereas the unemployment rate of the youth is 60%. These high unemployment rates are extremely high for a European country. In comparison the overall unemployment rate of Mauritius is about 12%. On the one hand, unemployment on the island is connected to the 42% of the population without graduation. They are being helped by the government with a financial support, but on the other hand it is difficult to find a job.
This statistic illustrates the number of people with jobs on the Réunion Island :
https://www.statista.com/statistics/1353185/number-jobs-french-overseas-regions/
Population: Réunion 859 959, Guadeloupe 383 600, Martinique 361 225, Guyane 285 100
As of that time, the unemployment rate in Germany was around 4–5%, which is considered relatively low and indicative of a strong job market. Germany has a well-developed vocational training system and a focus on maintaining a skilled workforce, contributing to its historically low unemployment rates.
More than half (56%) of the population aged 25 and older had a higher secondary education in 2018 (completed vocational training, technical college entrance qualification, or university entrance qualification). Accordingly, 23% possessed a completed vocational training, and just under a third (32%) had a technical college entrance qualification or university entrance qualification. Among those aged 25 to 29, 80% had such an educational qualification (27% completed vocational training, 53% high school diploma or technical college entrance qualification). In contrast, only 16% of individuals aged 60 and older had completed vocational training, and 20% had a technical college entrance qualification or university entrance qualification.
Source : https://www.statista.com/statistics/795244/employment-in-germany/
Comparison of the wages
If you compare the minimum wage in Germany with France, it is noticeable that it is very similar. The average wage in Germany is 12€/h and in France it is 11,53€/h. The minimum wage in Germany is 1584€ per month and 1540€ in France. So we can see that’s also very similar.
Sources
Economie de La Réunion – Habiter La Réunion (habiter-la-reunion.re)
Économie de La Réunion — Wikipédia (wikipedia.org)
EU – Aktuelle Arbeitslosenquoten in Europa | Statista
https://www.statista.com/statistics/1353185/number-jobs-french-overseas-regions/