Ernst & Young survey underscores German strengths, despite ongoing
BERLIN, June 22, 2012 /CNW/ - Investments in Germany increased at an unprecedented rate last year,
according to a new report by Ernst & Young. Despite the ongoing euro
crisis, foreign direct investment projects jumped nearly 7 percent. At
the same time, 43 percent more jobs were created than in the previous
year and 60 percent of international managers expect Germany's
attractiveness to further increase.
"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," stated Juergen
Friedrich, Chief Executive of Germany Trade & Invest in Berlin.
Germany once again topped the European rankings among companies surveyed
and further improved its profile as a global player. According to Ernst
& Young, Germany's most important competitors in the race to attract
FDI are no longer its European neighbors, rather the USA and China.
The Ernst & Young "Business Location Germany 2012" survey, a poll of 840
international companies, underscores Germany's standing as an
innovative business location as well: 40 percent consider R&D and
innovation capacity as outstanding qualities of Germany. The country's
labor costs, lack of flexibility in labor laws and corporate taxes were
targets of criticism. However even these factors received more positive
than negative appraisals among managers.
Dark Clouds on the Horizon?
Despite Germany's safe haven status for investors, an ongoing euro
crisis and global slowdown could also have profound effects. While
German exports have gained a foothold in the BRICS, 59 percent of
exports remain destined for the European Union. A slowdown in China and
Brazil and the slowed recovery in the USA could compound the euro
situation, according to Germany Trade & Invest experts. Despite these looming concerns, 91 percent of international
investors surveyed by Ernst & Young expressed confidence that Germany
will overcome the current crisis.
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 in the German market. It
provides information on foreign trade to German companies that seek to
enter foreign markets.
SOURCE Germany Trade and Invest
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Germany Trade & Invest