Germany Capital Berlin Currency Euro (EUR) Population 82.43 million EU status Member GDP $2.45 trillion Employment 88.4% Government type Federal republic Religions Protestant 34% Roman Catholic 34% Muslim 3.7% unaffiliated or other 28.3% Languages German Exports $1.016 trillion f.o.b. (2005 est.) Imports $801 billion f.o.b. (2005 est.)

Germany

One of the largest economies, and one of the largest markets in Europe, Germany’s 16 states (Länder) offer a wide variety of opportunities and challenges to investors, from the international banking district of Frankfurt’s “Mainhattan” to the high-spec manufacturing for which the country is renowned, and the developing regions in the former East Germany.

The infrastructure is second to none

Business confidence on the up

The economy went through a slowdown during the first years of the century, leading to economic stagnation and high levels of unemployment, but is now well on the way to recovery, with the economy once again growing. At the beginning of 2006, business confidence was reportedly at its highest level in 14 years, based on research from the IFO. Consumer confidence was also up, and Bear Stearns economist David Brown was quoted in the Financial Times as saying that: “It is not just economic spring returning to the German recovery, it looks like full-blown summer.” In January 2006, the government announced the start of a four-year, €25 billion investment programme to spur growth, jobs and innovation. It has pledged to reduce the taxation burden in order to attract international business.

World-class infrastructure

An efficient and widespread road network is backed up by an extensive rail and river system. Germany has major ports at Hamburg and Bremen, but also has easy access to Europe’s busiest container port, Rotterdam in the Netherlands. With easy access to markets including France, the Netherlands and Belgium in the west, Italy and Austria to the south, and Poland and the Czech Republic to the east, and rail links all the way to Russia, Germany is not only a marketplace of 80 million in its own right, but acts as a logistical hub for a market of hundreds of millions across Europe. In addition, there is a fast, modern telecommunications infrastructure with high levels of internet and mobile connectivity.

Skills and technology

Germany is renowned for the skills of its workers and for high quality products and precision engineering. Auto firms such as BMW, Audi and DaimlerChrysler, worldclass software and telecommunication firms, and events such as the CeBIT ICT fair have given Germany a global reputation for technological advances in both the industrial and knowledge-based economies. Over half of Germany’s industrial output comes from sectors considered to be research-intensive — more than that in any other major industrialised nation.

Investment incentives

Highrise towers in Germany’s financial capital

A wide variety of investment incentives are available. Those available from the EU, rather than from the German government, are due to undergo review during 2006, but it is unlikely that many of them will be changed. In particular, the German government offers incentives for companies looking to invest in Eastern Germany, which still has significantly higher unemployment than the West, despite massive investments from the government to renew the infrastructure.

These include support for establishing production facilities, support with training and labour costs, loans at reduced interest rates and support for SMEs. Industry clusters have been formed in a variety of sectors, including aerospace, automotive, chemical, electronics, mechanical engineering and renewable energy.

 

Facts in brief

Germany’s location is Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark. Strategic location on North European Plain and along the entrance to the Baltic Sea

Its climate is temperate and marine: cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind

Economic powerhouse: Frankfurt’s banking district

Natural resources include coal, lignite, natural gas, iron ore, copper, nickel, uranium, potash, salt, construction materials, timber, arable land

Agricultural products are potatoes, wheat, barley, sugar beets, fruit, cabbages, cattle, pigs, poultry

Industries include among the world’s largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles

Diplomatic representation in the US — Chief of mission: Ambassador Klaus Scharioth

Diplomatic representation from the US — Chief of mission: Ambassador William R Timken, Jr

 

Contact Information

American Chamber of Commerce in Germany
Rossmarkt 12
60311 Frankfurt am Main,
Germany
Tel: +4969 9291 0420
E-mail: amcham@amcham.de
Website: www.amcham.de

Useful websites

Berlin.usembassy.gov	US Embassy
www.invest-in-germany.de	Official FDI Agency
www.iic.de	Investment promotion agency for former East German states
www.germany-info.de	General web portal in association with the German Embassy
www.destatsis.de_eng	Institute of Statistics
www.cometogermany.com	Tourist information

 

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