Germany holds the title of the largest European market. As a result, it is the favorite place for direct foreign investors, which has led to a vast FDI(foreign direct investment) stock to accumulate over the years. At the same time, Germany has been ranked more than once as the most desirable FDI destination. This is owed to the exceptionally experienced workforce, balanced legal climate, prime research, reliable infrastructure and an ideal social environment.
10 Major reasons to invest in Germany
1. Leading economy : Germany is the economic powerhouse of Europe, with a nominal GDP of 3.573 trillion euros. Investors profit from the economic performance of the world’s fourth-largest economy and it also offers a vast domestic market and easy access to developing markets in the enlarged European Union.
2. Global player : Germany is the world’s number three exporter, neck and neck with China and the United States. And with 556 billion euros in FDI stocks, it also proved to be an investment attraction and one of the top areas for foreign investors.
3. High productivity : With one of the highest productivity rates in the world, German quality and competitive unit labor costs are definitive factors of its competitiveness. A progression of social and market reforms has additionally contributed to Germany’s continued economic growth making it one of Europe’s most cost-effective production areas.
4. Extraordinary workforce : Germany‘s world-class general and vocational education system meets the highest criteria. 87% of the adult populace in Germany has successfully attained at least an upper secondary program which is significantly higher than the OECD average of 78 percent. Being an investor-friendly social market, its economy promotes stable labor relations.
5. Innovative power : Germany is Europe’s primary location for research. German R&D (Research & Development) is subsidized by billions of euros in annual federal funds, helping to make it the world’s leader in advancement. It is this commitment that also makes it Europe’s leading patent applicant and the dominating global force in high-tech solutions.
6. First-class infrastructure : Situated in the heart of Europe, Germany is Europe’s central logistics market. With sophisticated energy and communications infrastructure, and first-class transportation networks, its logistics hubs ensure on-time delivery and short roads to success.
7. Solid SMEs : The Germans economy is portrayed by privately owned small and medium-sized firms. 85% of all businesses are small or medium-sized. This makes the German industry very adaptable, multifaceted, and active. Several of these profoundly specialized firms are world market leaders in their field, so-called hidden champions.
8. Inviting incentives : Germany provides appealing incentives to all investors. There is a detailed range of programs set aside that support the wide range of business activities at all aspects of the investment process.
9. Secure investment system : Germany’s Highly developed economic and political structures provide the essential security for business investment present in the nation. Its judiciary and civil service institutions are professionally governed to ensure reliable and excellent service. Its Contractual agreements are secure and its intellectual property is highly protected.
10. Legal Security : Germany is continuously battling corruption and money laundering with its transparent and reasonable laws, and these goals are internationally recognized. International studies demonstrate that German legal security is highly regarded by investors, and the country’s legal system has served as an example for legal systems in many other countries. Among all countries, Germany ranks fourth in terms of legal security.
We also add:
11. Germany is a modern, lenient and cosmopolitan culture with an excellent standard of living.
12. Companies situated there have access to a pool of highly skilled, motivated workers, while also benefitting from a unified tax code and less red tape than in other Western countries.
In addition, Superior health and education provision, endless opportunities for sports and recreation in the nation’s beautiful landscape, and an energetic cultural scene are just more reasons why more than 7 million foreigners have made their homes in the nation.
Investing in the Germans economy is just around the corner with your Damalion experts just a text away. If you want to register your German company to invest or expand your business in Europe, please contact you Damalion expert now.
