Germany Top European Investment Location

Top European and BRIC managers put Germany in sixth place in the world among countries with the best growth prospects, after the BRIC states and the US. It is the number one investment location in continental Europe, says international law firm Allen & Overy.

A recent survey by Allan & Overy found that 21% of European and 12% of BRIC top managers thought Germany has the best growth potential. Germans are also most confident about their own business prospects, with 48% looking toward a “very positive” and 50% to a “fairly positive” future, despite the euro and debt crises. At the same time, one quarter of BRIC and US investors believe that Europe’s economic importance is waning.
“Germany’s current competitive edge is mainly due to its companies’ scope for innovation and flexibility in a changing economic environment, and to personnel costs that are rising far more slowly than the European average, as a result of stagnating wages and lower social security charges for employers,” said Neil Weiand, senior partner in Germany. “These prerequisites are helping German companies to hold their own in these volatile and difficult markets.” Optimal tax structures are another success factor that is attracting international investors.
An analysis of global investment flows showed that direct foreign investment into Germany reached US$46.1bn last year, down from the 2007 peak of US$76.5bn, while German investments abroad amounted to US$104.9bn, also down from pre-crisis US$162.4bn. German income from holdings abroad came to US$178.6bn in 2009, down from €604.1bn in 2006. Income of foreign investors in the country was at US$358.7bn, down from US$713.6bn.

//www.pie-mag.com/articles/1860/germany-seen-as-top-european-investment-location/