Germany is a safe haven for investors: The majority of international corporations in Germany rate their current financial position as good or very good. Especially the high quality of life, work efficiency and political stability are major drivers for investment. This was shown in our study "Business Destination Germany 2020", for which we surveyed 340 executives of the largest international corporations in Germany.
The healthcare, construction, renewable energies and automotive industries provide the greatest potential for international companies.
Investment hope: Startups and German family businesses
International investors also benefit from the German startup scene as well as the wide variety of family-owned companies, the famed German Mittelstand (SMEs). These frequently are global market leaders and drivers of development in their specific niche markets and are increasingly looking for successors at management level.
Strongest regions in Germany attract most investors
Geographically, Bavaria is and remains the most attractive location for investment for well over a third of those surveyed, followed by North Rhine-Westphalia (27%), Baden-Wuerttemberg (20%) and Hesse (16%).
Foreign companies demand reforms
In spite of the numerous positive arguments, international companies see a real need for reform. The greatest challenges are necessary investments in infrastructure, the tax system, the lack of skilled labour as well as incentives for international investors to establish themselves and expand.
Only about half of the international companies rate Germany's infrastructure as one of the five best or the best in the EU: a loss of 20 percentage points compared to the previous study of two years ago.
The lack of highly qualified staff is a challenge. Only a quarter of those surveyed considers Germany among the top 5 in this regard, a loss of 19 percentage points compared to the survey results two years ago.
You can find all the results and conclusions in the study "Business Destination Germany 2020" provided in English:
