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The German economy is growing

Jennifer Dimaano

German Flag

Despite the ongoing EU crisis the country remains in tact

According to a new report released by Ernest & Young, investments in Germany have increased exponentially, leaving the rest of the European continent behind.

In the report, direct foreign investments have jumped up to a near 7 percent along with a 43 percent increase in the job market and only high expectations for further growth—60 percent of international managers see Germany only to increase further.

Juergen Freidrich, Chief Executive of Germany Trade and Investment, stated, “This survey confirms what we have been hearing from investors. Our outstanding infrastructure, qualified workforce and stability make Germany one of the top global destinations for foreign investment. Industries like the automotive industry, renewable energy and IT are strengthening Germany’s attractiveness worldwide.”

Germany has further improved its stance as a global player making its main competitors U.S. and China in the race to attract FDI.

In a poll for Ernst & Young “Business Location Germany 2012” draws attention to Germany’s locale. The poll consisted of 840 international companies. Qualities that were highlighted were Germany’s innovation capacity, and 40 percent consider research and development. Some critical remarks were labor costs, inflexible labor laws and corporate taxes; though despite the criticism, these critical factors received more positives than negatives assessments among managers.

Despite the prosperous outcome Germany has had in the past year, the country’s economy still remains uncertain. According to Germany Trade & Invest experts, the economic slowdown in BRIC countries and the slowing recovery of the U.S. economy, along with the continuing EU crisis could complicate things.

Germany Trade & Invest advises for foreign companies who consider expanding business activities to venture into the German market.

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