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Press Release

"Germany most attractive investment destination in Europe" - EY

A survey of top decision makers carried out by EY has declared Germany the most attractive investment destination in Europe and the third-most worldwide.

Berlin (gtai) - Germany has scored top in Europe and third worldwide in EY's 2015 European Attractiveness Survey, which was released yesterday and offers insight into the desirability of particular regions or countries as investment destinations.

Only China and the USA placed higher in the global ranking, making Germany by far the best-scoring European country.

A second survey which looked at Germany in particular identified the country's transport and logistics infrastructure and highly qualified workforce as its top strengths. Two thirds of respondents considered the country’s policies to be congenial to international investment.

The report praised Germany in the highest terms, describing it as "the only global player amongst the European countries" and noting that "Germany is regarded as a premium destination with advantages in the area of innovative, trend-setting products."

The report identified 763 FDI projects which created 11,327 new jobs in Germany in 2014 – a figure second only to the UK which saw 887 projects. US-based companies were the biggest investors in Germany and were responsible for one in five projects. China and Switzerland followed with a 10 percent share each. The UK benefits from investments from the USA thanks largely to its cultural and linguistic proximity, EY notes.

Thomas Bozoyan, senior manager of market intelligence at Germany Trade & Invest: "Germany now has an attractiveness rating double that of its nearest European competitor. The country’s robust economic performance is a driving force in the Eurozone and international companies are keen to play a part in that success."

Managers consider highly qualified and affordable personnel the third-most-important factor when making an investment decision. This indicates that companies are facing difficulties in meeting this need in many locations. Germany’s globally respected dual system of vocational education is a major competitive advantage in this respect, EY writes.

The survey also found that stability and transparency in the political and legal systems are an increasingly important factor in investment decisions. 84 percent of respondents considered Germany to be very attractive or rather attractive in this respect.

Bozoyan: "Perhaps most encouraging is that more than half of the managers predict that Germany's attractiveness will continue to grow. Germany Trade & Invest is here to help international businesses take advantage of that."

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