Germany competing with China and India for new investments, Euro crisis causing uncertainty
BERLIN, April 3, 2012 /CNW/ - Germany was again named the top investment destination in Europe, according to American executives. US companies saw revenues in Germany decrease slightly in 2011 compared to the banner year in 2010, but 81 percent expect a revenue increase in 2012. Only China and India were cited more than Germany as targets for future investment. These are the findings of this year's AmCham Business Barometer, released today by the American Chamber of Commerce in Germany and Roland Berger.
"These results confirm Germany's position as the locomotive of the European economy. American companies have a long tradition in Germany. Their feedback is a great indicator of what is going well and what can be improved," stated Juergen Friedrich, Chief Executive of Germany Trade & Invest in Berlin.
This year's study of several hundred American companies in Germany also revealed room for improvement to the business environment. The uncertainty of the euro crisis, bureaucratic hurdles, risk aversion and bottlenecks in finding qualified workers were seen as problems. On the other hand, American companies praised Germany's diverse industrial landscape and economic stability.
Business Barometer confirms Germany Trade & Invest Report
US investors were more cautious with new investments in 2011 due to the Euro crisis, according to AmCham. In a recent report on FDI, Germany Trade & Invest experts found that Chinese investment projects surpassed the United States for the first time last year.
"China's rapid rise is astonishing. That new investment projects have gone from virtually non-existent to the top spot in a few years should not be underestimated. But the US economy is still indispensible as a market for German goods and a source of large-scale investment for decades," continued Friedrich.
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.
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