A large market, central location, strong innovation and highly developed infrastructure – there are good reasons for investing in Germany.
- Large Market – With 82 million inhabitants, Germany is the European Union’s most populous country and therefore also the largest market within the EU. With a gross domestic product of more than 2.2 trillion euros, Germany is the largest economy in Europe and the third strongest economy in the world.
- Central Location – Germany’s central location in Europe makes it a hub for goods and services. Germany is especially benefitting from the EU enlargement. As a result, it is the only country among the seven most important industrialized nations to increase its share of world trade since 1995.
- Open Market – Germany is an open market and warmly welcomes foreign investors. That is demonstrated by the 22,000 foreign enterprises that have established businesses in Germany and now employ more than 2.7 million people. The German market is open to entrepreneurial investment in practically all areas. There are no longer any state-controlled industries. Germany is receiving increasing attention from private equity firms and hedge funds due to its highly attractive companies and favorable investment conditions.
- 4. International Location – More than 7 million foreigners live in Germany. Several metropolitan regions have prominent foreign communities with their own schools, churches, shops, and restaurants. For example, a large number of Japanese live in the Düsseldorf region, many Koreans in and around Frankfurt, and many Chinese in Hamburg. Approximately 70% of German blue- and white-collar workers can speak English.
- Qualified Personnel – Germany offers an exceptionally well-qualified, motivated, and conscientious workforce. German employees’ high standards of knowledge and skills are internationally recognized. The demand for professionals is met by 383 institutions of higher education. Another pillar of the German training system is the “dual system” of vocational education, which combines workplace training and school instruction and produces an acknowledged high standard of training closely oriented towards the needs of industry.
- High Level of Innovation – Statistically, Germany has 277 international patents per one million inhabitants – more than anywhere else in the world. The close cooperation between industry and world-famous research institutions like the Max Planck and Fraunhofer Institutes swiftly transforms new ideas into products for the world market.
- Highly Developed Infrastructure – Germany has a closely-knit network of roads, railways, and international airports. That guarantees swift connections. The airport in Frankfurt is an international hub. The Port of Hamburg is one of the largest container transshipment centers in Europe. Communications infrastructure is exceptionally well-developed throughout the country.
- Legal Security – Germany is a modern constitutional state with transparent and reasonable laws. The advantages are internationally recognized. The German legal system has served as a model for legal systems in many other countries. International studies demonstrate that German legal security is highly regarded by investors. Among all countries, Germany ranks fourth in terms of legal security.
- Strong Mittelstand – The German economy is characterized by privately owned small and medium-sized firms, the Mittelstand. 85% of all businesses are small or medium-sized. This makes the German industry very flexible, multifaceted, and competitive. Many of these highly specialized firms are world market leaders in their field, so-called “hidden champions”.
- World-Famous Trademark – Products with the “Made in Germany” seal stands for the highest quality worldwide. This has played no small part in maintaining Germany’s position as a world champion exporter for many years. The automobile, mechanical engineering, electrical engineering, and chemical sectors are particularly strong. Industries of the future such as environmentally friendly energy production and nanotechnology, in which the number of patent applications is doubling every two years, are steadily gaining in importance. Foreign investors can profit from the “Made in Germany” seal of quality.
