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- German Classification of Economic Activities (WZ) - Die Klassifikation der Wirtschaftszweige
The German Classification of Economic Activities, known as WZ (Klassifikation der Wirtschaftszweige), is a system used to categorize economic activities in Germany. It is managed by Germany's federal statistical office (Destatis). While closely aligned with the NACE classification system, as is the case with other national classification systems within the EU, the WZ is adapted for the German economic context. It is a five-level hierarchical system ranging from broad categories at the top to very specific activities at the lowest classification level.
Structure
The German Classification of Economic Activities (WZ) is a five-level hierarchical framework for categorizing economic activity in Germany. Its current version is structured as follows:
Sections: 21 sections represented by letters ranging from A to U. This is the broadest category in the WZ.
Divisions: 88 divisions represented by two-digit codes (01-99).
Groups: 272 groups represented by three-digit codes (01.1-99.0).
Classes: 615 classes represented by four-digit codes (01.11-99.00).
Sub-classes: 839 sub-classes represented by five-digit codes (01.11.0-99.00.0). This is the finest level of detail in the WZ and is specified according to the German economic context, as is the case in other national classification systems in EU member countries.
The table below breaks down each of the 21 sections in the WZ. The manufacturing section is the most diverse section at the sub-class level with 260 activities followed by "wholesale and retail trade; repair of motor vehicles and motorcycles" with 164. The GZ has a higher number of industries at its most detailed classification level (sub-class) compared to other national systems in Europe: NOGA (Switzerland) has 794 industries, the UK SIC 2007 (United Kingdom) has 191, and SBI (Netherlands) has 478. It, however, contains fewer industries compared to the NAICS (United States) which has 1012.
Section | Title | Divisions | Groups | Classes | Sub-classes |
A | Agriculture, forestry and fishing | 3 | 13 | 39 | 46 |
B | Mining and quarrying | 5 | 10 | 15 | 15 |
C | Manufacturing | 24 | 95 | 230 | 260 |
D | Electricity, gas, steam and air conditioning supply | 1 | 3 | 8 | 12 |
E | Water supply; sewerage, waste management and remediation activities | 4 | 6 | 9 | 12 |
F | Construction | 3 | 9 | 22 | 30 |
G | Wholesale and retail trade; repair of motor vehicles and motorcycles | 3 | 21 | 91 | 164 |
H | Transportation and storage | 5 | 15 | 23 | 36 |
I | Accommodation and food service activities | 2 | 7 | 8 | 23 |
J | Information and communication | 1 | 13 | 26 | 30 |
K | Financial and insurance activities | 8 | 10 | 18 | 26 |
L | Real estate activities | 1 | 3 | 4 | 8 |
M | Professional, scientific and technical activities | 7 | 15 | 19 | 38 |
N | Administrative and support service activities | 6 | 19 | 33 | 39 |
O | Public administration and defence; compulsory social security | 1 | 3 | 9 | 9 |
P | Education | 1 | 6 | 11 | 18 |
Q | Human health and social work activities | 3 | 9 | 12 | 18 |
R | Arts, entertainment and recreation | 4 | 5 | 15 | 26 |
S | Other service activities | 3 | 6 | 19 | 25 |
T | Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use | 2 | 3 | 3 | 3 |
U | Activities of extraterritorial organizations and bodies | 1 | 1 | 1 | 1 |
Total | 88 | 272 | 615 | 839 |
History and Versions
Post-World War II Era (1940s-1960s): Following World War II, the need for standardized economic classifications to aid in the reconstruction of the German economy and to facilitate effective economic planning and policy development became evident. Early efforts focused on establishing a framework that would allow for consistent data comparison both within Germany and internationally. WZ 1950 and WZ 1961 were the frameworks for this early period.
Further Revisions (WZ 1970 and WZ 1979): The first formal version of the WZ classification was introduced in 1970. This initial version was modeled after the United Nations' ISIC, a global framework for economic classification, and the EU's NACE. This alignment was essential for ensuring that German economic data could be compared internationally, particularly within Europe.
New Versions (WZ 1993 & WZ 2003): In 1993, a significant revision of the WZ classification took place to align it more closely with the updated NACE Rev. 1 classification of the EU. This update was part of Germany's broader integration into the European Union, ensuring that German economic statistics were fully compatible with those of other EU member states. The revision reflected changes in the economy, such as the growing importance of services and new industrial sectors. Another major update occurred in 2003, known as WZ 2003. This version provided more detailed categories, in line with the continuing evolution of the German economy, particularly the expansion of the service sector, which by then had gained major prominence. WZ 2003 also incorporated emerging industries and technological advancements, ensuring the classification remained relevant.
Current version (WZ 2008): This is the most recent version of the WZ which was introduced to align with NACE Rev. 2. This update was necessary in light of global economic transformation, particularly the rise of the information technology sector, the digital economy, and new service industries. WZ 2008 introduced more granular categories for these sectors, enabling more precise statistical analysis.
Where is it used?
The German Classification of Economic Activities (WZ) is the principal framework used by Germany's federal statistical office (Destatis) in reporting national economic data. Other government agencies as well as private companies use the WZ for regulatory compliance, tax reporting, and market analysis. In addition to its administrative and regulatory uses, the WZ framework is a widely used classification framework for researchers of business and socioeconomic issues in Germany.