Germany's economy has recovered more strongly than the rest of the European Nations as the government's stimulus measures were equivalent to a larger share of GDP in most other European Union countries helped restore growth. In particular, government subsidies allowed companies to hoard labor rather than fire workers as in the US. These measures contributed to the sustained fall in official unemployment.
Due to these stimulus measures, there are signs that the economy is rebalancing and that German consumers are starting to spend. This is evident in the rebalancing in the German economy. In the past, German consumers were difficult to handle. Retail sales have neither soared nor nosedived on the swings in German macroeconomics but have been stable. The German model is working unlike in the US and UK where there was too much expansion of the non-traded sectors – too many people in construction, real estate and finance. There was no need to make any changes to the German economic model.
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