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Germany gaining popularity with foreign investors

February 04, 2008

Even as German companies foray into overseas investments, there’s a new avenue gaining ground in Europe. As per an IBM study released in 2007, Germany ranks as the eighth most popular destination for foreign investments in the world. This result is an increase of four places compared to 2005.

The ‘Global Location Trend Study’ examined 10,500 investment location decisions in 2006 with a view to country of origin, destination of the investment, and the number of jobs created. It concluded that foreign investors have increasing confidence in Germany as an investment site.

Germany also recorded an increase in relation to other European countries. In 2006, it was the third most popular destination for foreign investment in Europe, an improvement over the sixth-place position within Europe that Germany tallied in 2005.

The leading two regional recipients of foreign investment in Germany were the federal states of Saxony and Bavaria followed by Saxony-Anhalt and Nordrhein-Westfalen. Saxony and Saxony-Anhalt are both in eastern Germany, Bavaria is in the south of the country, and Nordrhein-Westfalen is in the west.

The top three foreign countries investing in Germany in 2006 were the USA, The Netherlands, and Switzerland, and the most popular industries for foreign investment in Germany in 2006 were information and communication technologies, industrial machines, and the automotive industry.



by Sakshi Arora
© German Information Centre New Delhi
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