Why invest in Germany?
Why should you invest in Germany?
Here are eight arguments which summarize the advantages Germany offers as an investment location:
First, Germany is the biggest market in Europe. Almost 82 million people live, work, and consume here. Sixteen percent of the enlarged EU population lives in Germany.
Second, its geographic location in Europe also makes it the economic center of Europe. It shares nine borders with both its traditional trading partners in western Europe and the growing markets of central and eastern Europe, making Germany the geographic and economic hub of the EU.
Third, since 2004 the expanded EU has been a trading and investment location with about 465 million consumers. Traditionally, Germany has served as a hub for these growing markets in middle and eastern Europe.
Fourth, companies with production locations in Germany profit from the world-renowned “Made in Germany” brand label.
Fifth, companies located in Germany usually invest substantial amounts in research and development. This is not by coincidence: Germany is the technological leader in Europe and the second biggest exporter of goods that require extensive research and development. In addition, Germany is a world leader in the fields of vehicle construction, machine construction, and environmental technologies. Of the large European economies, Germany boasts the heaviest concentration of innovative companies. Of all the patent applications submitted to the European Patent Office, more than 20 percent come from Germany. In the EU, Germany is the country with the most patent applications by far.
Sixth, as always, the German economy is one of the most productive economies in Europe. The restraint in salary and wage increases of recent years and an increase in productivity have all contributed to a favorable development in unit labor costs in the past 10 years. These developments have helped Germany increase its competitiveness significantly against its neighbors in eastern Europe.
Seventh, Germany benefits from an extremely capable and internationally orientated middle class of companies. Many medium-sized German companies are world leaders in their respective product categories. These companies have good reputations for quality and reliability. Consequently, when foreign firms locate in Germany, they invariably find a reliable base of internationally experienced and qualitatively excellent partners and suppliers.
Finally, the German infrastructure is nothing less than excellent. No country in Europe can boast a traffic network of comparative density. The growing traffic in goods is turning Germany into the world’s hub. In the recent years, Germany’s geographic location in the heart of Europe and its tightly connected infrastructure have helped attract many foreign companies to Germany.
For further questions please contact Germany Trade & Invest at gtai%27%com,request. Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities to the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.
