Germany is a very attractive country in terms of foreign direct investment, but FDI flux have declined after the beginning of the global recession in 2008 and the euro zone crisis which followed in 2012. They should recover in 2014. According to UNCTAD, the country is world's sixth largest investor. Prior to the crisis, it experienced rapid growth of FDI flows from Asia, especially from China and India.
Among the country's strengths are its very high and powerful industrial network, a highly skilled workforce with a good command of English and a location in the heart of Europe. Its main weakness is a high tax rate (for both individuals and businesses).
|Index of Transaction Transparency*||5.0||6.0||7.0|
|Index of Manager’s Responsibility**||5.0||5.0||9.0|
|Index of Shareholders’ Power***||7.0||9.0|
|Index of Investor Protection****||5.0||6.1||8.3|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||59,317||13,203||26,721|
|FDI Stock (million USD)||737,076||788,098||851,512|
|Performance Index*, Ranking on 181 Economies||86||-||-|
|Potential Index**, Ranking on 177 Economies||8||-||-|
|Number of Greenfield Investments***||856||858||784|
|FDI Inwards (in % of GFCF****)||9.0||2.2||4.2|
|FDI Stock (in % of GDP)||20.3||23.0||23.4|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Any Comments About This Content? Report It to Us.
© Export Entreprises SA, All Rights Reserved.
Last Updates: December 2014