Key Competitive Attractions
Germany Trade and Invest is the foreign trade and inward investment agency of the Federal Republic of Germany.
Mission
"To promote Germany as a location for industrial and technological investments and to identify investors for the German market."
Germany is the largest market in Europe, contributing 20% of Europe's GDP (EU-27), with 16% of the European Union's population. The German economy is diverse and highly industrial, with equal emphasis on services and production.
Germany welcomes foreign direct investment (FDI)
- The German market openly invites investment in all industry sectors
- German law does not differentiate between Germans and foreign nationals with regards to investments or company relocation
- Between 2002 and 2008, Germany's FDI stocks increased by a total of 69%, reaching €476 billion
- Over 45,000 foreign companies have already established operations in Germany, employing approximately 3 million employees
- Germany ranks 5th in the world as a recipient of foreign direct investment
- Between 2003 and 2009, 2,150 foreign companies initiated 2,870 investment projects in Germany
- In 2009, 478 greenfield projects were initiated
- The American Chamber of Commerce carried out a study, inviting American companies to indicate their main medium-term investment focus within the EU. 80% of those that participated gave Germany as their first choice
Economic facts and figures
- GDP in 2009: €2.4 trillion
- GDP per capita in 2009: €29,406
- Exports of goods in 2009: €808 billion
- Imports of goods in 2009: €674 billion
- GDP by sector in 2009: Services 55.0%, Industry 26.6%, Trade 17.6%, Agriculture 0.8 %
- Inflation rate in 2009: 0.4%
- Number of companies in 2008: 3.63 million, (99.7% of which were SMEs)
- Total turnover of all companies in 2007: €5.15 trillion
- Total turnover from SMEs in 2007: 37.5%
- Total employees in 2008: 30 million (70.5% of which were employed by SMEs)
Infrastructure
- There are 23 International Airports in Germany
- Germany is home to 22 sea ports, 250 inner harbours, and 7,500 km of waterways
- Germany has 231,000 km of road networks
- There are 37,900 km of railway track in Germany
- The high standard of Germany’s infrastructure is reflected in numerous recent studies, including the Swiss IMD’s World Competitiveness Yearbook and various UNCTAD investor surveys
- Between 2009 and 2010, the Global Competitiveness Report of the World Economic Forum placed Germany's infrastructure as the best in the world, for its highly efficient transportation of passengers and goods
- Hamburg is the second largest container port in Europe
- Bremerhaven is the largest car port in Europe for vehicle traffic
- Duisburg is home to Europe's largest inland port
- Frankfurt is the 7th largest airport in the world in terms of cargo, and the 9th largest in terms of passenger volume
- Germany's high-speed railway network, with speeds reaching 300 km/h, is the 4th largest in the world
Innovation and R&D
- In 2007, Eurostat ranked six German regions within the top 20 high-tech regions in Europe for absolute employment in high-tech sectors: Cologne, Darmstadt, Düsseldorf, Karlsruhe, Stuttgart, and Upper Bavaria
- A plethora of incentives regarding research and development are available to investors - for more information, please see Taxes and Incentives below, or the Funding and Support section
Labour and Education
- In 2008, Germany was home to 30 million employees
- Over 80% of the German labour force has undertaken formal vocational training, or has attained an academic degree
- In 2009/2010, more than 422,705 students enrolled in 400 universities
- Germany ranks 2nd in a comparison of OECD countries for number of PhD graduates, with 315 PhD graduates per million inhabitants
- 31% of all university students in Germany study mathematics, the sciences, computer sciences, and engineering - the 2nd highest in the EU
- Germany's unique dual education system merges the benefits of classroom-based and on-the-job training over two to three years, designed to meet industry needs. Approximately 350 occupations are currently recognised by the system
Taxes and Incentives
- Germany boasts one of Europe's most competitive tax systems.
- Corporate tax averages at 29.83%
- Germany offers incentives to help meet the needs of investors, such as providing cash incentives at the first stage of an investment project when capital expenditures are high in comparison to later investment stages
- Cash incentives can be as much as 30% percent for large enterprises, 40% for medium-sized enterprises, and 50% for small enterprises
- After the initial stages of the business operations are underway, there are labour-related incentive schemes to support companies to build their work force, as well as support for recruitment, training, and wage subsidies
- There are numerous R&D financial programmes, most commonly in the form of R&D grants
- All investment incentives can be combined to provide optimum support for your business
Germany as a global leader
- Since 2003, Germany's exports have increased by approximately 8% every year
- Germany has become the world export leader for six years straight, overtaking the United States
- 2008 marked a high point in Germany’s trade history for German trade figures
- In 2009 alone, imports and exports totalled €674 billion and €808 billion respectively
- Germany-made goods from the automotive, chemical, and machinery & equipment industries are particularly in high global demand
- 63% of all exports go to European countries, 15% of which are Eastern European countries
- In 2009, Asia received approximately 14% of all goods from Germany, with 10% received by the Americas
- Germany is the most significant driver of Europe’s economic growth, boasting a turnover of €218 billion in 2008, and a rise in its logistics industry of 6% from 2007
- Germany’s logistics infrastructure ranks among the best in the world, and it follows that its companies are also global logistics leaders: The world’s largest logistics service provider is German company, Deutsche Post World Net (DPWN). The world’s second largest transportation and logistics company is Deutsche Bahn, and Lufthansa Cargo is the global leader in air freight services
Assistance and Support For New Business Investors
Germany Trade and Invest is the foreign trade and inward investment agency of the Federal Republic of Germany.
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