This century, just as the last, was a prosperous time for Germany, in spite of the weak central power. Population had increased enormously to an approximate 16 million by 1500, in spite of the fact that the Black Death had managed to wipe out a third of the population in the mid-14th century.

Another factor that grew enormously was trade, especially on an international scale. Given its geographical position in central Europe, Germany was a natural transit route for goods being traded between the Mediterranean and Northern Europe. Germany's rivers and Alpine passes were additional features that facilitated and enhanced trade operations. Towns began to grow rapidly due to urbanization as the manufacturing industry also began to flourish.

As towns expanded, a wealthy merchant oligarchy began to emerge, with considerable power. Towns began to band together, in attempt to protect themselves from other local powers or even from the imperial power. One notable trading federation that was formed was named the Hanseatic League, when several dozen towns from the northern part of Germany began handling shipping across the Baltic as well as terrestrial trade.

Expansion toward the east was also a phenomenon of the time, when many Germans formed part of a long, peaceful immigration process and wandered as far as Russia.

Intellectually, Germany also prospered. Increased contact with humanists from other parts of Europe, opened and nourished cultural and ideological matters and numerous universities were founded.