ECONOMIC OVERVIEW GERMANY:

Transcription

1 Issue 2015/2016 ECONOMIC OVERVIEW GERMANY: Market, Productivity, Innovation

2 ECONOMIC OVERVIEW GERMANY BASIC DATA Area: 357,340 sq. km Population (m.): 80.9 Number of companies 3.7 million, 99.6% SMEs Total turnover of all companies (2012) EUR 6.1 trillion, 35% SME turnover GDP FORMATION 2014 Others 26.9% Manufacturing Industries 22.2% Construction 4.8% Commerce, Transportation, Catering 15.4% ECONOMIC DEVELOPMENT GDP (nominal in EUR billion) 2014: 2,904; 2013: 2,810; 2012: 2,750 Per capita GDP (EUR) 2014: 35,247; 2013: 34,219; 2012: 33,569 Inflation rate 2014: 0.8%; 2013: 1.6%; 2012: 2.1% Unemployment rate 2014: 5.0%; 2013: 5.2%; 2012: 5.5% GDP GROWTH (real annual change in percent) Financial Services, Renting, Business Services 26.0% FOREIGN TRADE (EUR BN) Exports Imports Balance 1, % +2.0% 1, % -0.8% 1, GERMANY S TRADE RELATIONS WITH EU (EUR BN) Exports Imports Balance % +3.9% Information & Communication 4.7% -1.2% -0.3% % +0.7% +2.5% -0.7% Export goods (2014): Machinery 18.1%; motor vehicles and parts 17.1%; chemical goods 15.7%; electronic goods 9.1%; metal goods 8.1%; foodstuffs 4.5%; others 27.4% Import goods (2014): Chemical goods 12.7%; machinery 12.3%; crude oil and gas 12.1%; electronic goods 10.1%; motor vehicles and parts 8.3%; metal goods 7.6%; foodstuffs 6.0%; others 30.9% Sources: Germany Trade & Invest, Federal Statistical Office, Federal Ministry of Finance, ifm Bonn 2015

3 FOREIGN DIRECT INVESTMENT PAVING THE WAY FOR FOREIGN DIRECT INVESTMENT FIRST CHOICE BUSINESS LOCATION Ernst & Young s European Attractiveness Survey 2015 confirms Germany s reputation as one of the most attractive business locations in the world. International decision makers ranked Germany first within the EU, and third worldwide in the most attractive business location category. A substantial 42 percent of the 800 plus international managers surveyed consider Germany to be western Europe s foreign direct investment (FDI) magnet. The AmCham Business Barometer 2015 highlights the positive regard in which US companies active in Germany hold the country. Asked about their opinion on the German business environment, 90 percent of US company respondents expressed satisfaction. Sixty-six percent are convinced that Germany will either improve or maintain its competitive edge in the future. FREE AND OPEN MARKETS Germany has a welcoming attitude towards FDI. The German market is open for investment in practically all industry sectors, and business activities are free from regulations restricting day-to-day business. German law makes no distinction between Germans and foreign nationals regarding investments or the establishment of companies. The legal framework for FDI in Germany favors the principle of freedom of foreign trade and payment. There are no restrictions or barriers to capital transactions or currency transfers, real estate purchases, repatriation of profits, or access to foreign exchanges. AMCHAM BUSINESS BAROMETER 2015 American business executives highlighted the following five factors as the top location advantages that distinguish Germany from its competitors. Skilled workers Supply chain networks Research & Development Infrastructure Market potential Source: American Chamber of Commerce Germany, Roland Berger Strategy Consultants 2015 SUPPORTING INVESTMENT PROJECTS Incentives in Germany are designed to meet the immediate capital needs of investors. Early stage investment financing provides funding at the beginning of the new investment project. These incentives, mostly provided as cash grants, are important as they guarantee liquidity at a stage in the investment process when investor capital requirements are typically high. Later stage investment incentives are made available in the form of a raft of programs created to support putting together a workforce in Germany (e.g. through wage subsidies) and provide generous R&D project assistance. Incentives in Germany are available to all investors regardless of investor country of provenance. Funding to the tune of more than 19 billion has been freed up by the EU (cofinanced using means obtained from German federal and federal state budgets) for the period 2014 to As well as this, Germany and its individual federal states also make their own incentives funds available to prospective investors. Please visit our website for more incentives information: GLOBAL FDI MAGNET According to the United Nations Conference on Trade and Development (UNCTAD), Germany ranks among the world s leading countries for foreign direct investments with EUR 612 billion in inward FDI stocks in This represents a growth of 174 percent since According to official Bundesbank (German Central Bank) statistics for 2013, 56 percent of all FDI stocks in Germany originate from within the EU; with a further seven percent derived from the remaining European non-eu countries. Investments from outside the EU continue to grow. North America accounts for 21 percent of FDI stock, while Asia holds a 10 percent share.

4 FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENT PROJECTS Every year more and more companies discover Germany as a secure and rewarding investment location. More than 55,000 foreign companies are already operating in Germany, providing employment to around three million people proof positive of Germany s attractiveness as an international business location. Between 2010 and 2014, fdi Markets recorded a total of 4,142 investment projects from almost 3,500 foreign companies. In 2014, around 800 projects were recorded - one of the best results achieved to date. Germany ranks fourth internationally in terms of FDI projects attracted. FDI PROJECT SHARE IN GERMANY BY SECTOR Electronics & Semiconductors 7% Chemicals, Plastics, Paper 8% Consumer Goods (incl. Food & Beverages) 8% Source: fdi Markets 2015 Energy, Minerals, Metals 4% Healthcare, Pharma, Biotechnology 5% Transportation, Storage & Logistics 5% Textiles 10% Automobile 4% Industrial Machinery & Equipment 11% Other Sectors 5% ICT & Software 18% Business & Financial Services 15% FDI PROJECT SHARE IN GERMANY BY BUSINESS ACTIVITY The most important countries as sources for new investment projects are the USA (21 percent of all investment projects), Switzerland (11 percent), and the UK (nine percent) respectively. In 2009, China emerged as a major source of investments, rising to the most important Asian source country for greenfield FDI projects in Germany. The high level of Chinese investment has been maintained since then, making Germany the world's number one location for Chinese greenfield investments. DIVERSE INDUSTRY OPPORTUNITIES According to fdi markets, foreign companies invested in 39 different sectors underlining Germany s highly diversified economy. Most new investment projects were realized in the ICT & software industry (18 percent of new projects), business and financial services (15 percent) were close behind. Source: fdi Markets 2015 Sales, Marketing & Support Business Services Manufacturing Retail Headquarters Logistics, Distribution & Transportation 5% Other Activities 11% Most new projects open sales and marketing & support offices. One in eight investment projects is manufacturing-site located making this still a very important business activity in Germany. Germany Trade & Invest's industry experts will assist you to realize your investment project in Germany. Please contact [email protected] for more information. 5% 11% 11% 15% %

5 ECONOMIC OVERVIEW GERMANY: MARKET EUROPE S ECONOMIC HUB EUROPE S LARGEST MARKET Germany is the largest market in Europe. It constitutes 21 percent of European GDP, and is home to 16 percent of the total European Union (EU) population. The German economy is both highly industrialized and diversified; with equal focus placed on services and production. STABLE ECONOMY Germany is widely considered to be the economic stabilizing force in Europe - particularly within the Eurozone. Between 2010 and 2014, EU-28 real GDP grew by less than one percent. During the same period, the German economy grew at a rate of around two percent, with Germany's real GDP growth rate higher than that of France, Italy, and the UK. The German government expects an upswing of 1.8 percent in GLOBAL PLAYER Germany s products continue to be export hits worldwide. Offering innovative and competitive products of the highest quality, it is not surprising that, since 2010, Germany s average export quota has amounted to 39 percent. In 2014, German export levels reached EUR 1.1 trillion compared to imports of EUR 917 billion with the trade balance reaching a record value of EUR 217 billion. German-produced goods from the chemical, automotive, and machinery & equipment industries are in particularly high demand worldwide. Germany s main trading partners number European countries such as France, UK, Italy, and the Netherlands as well as international markets including the United States, China, Russia, and Japan. SHARE OF TOTAL GDP AND POPULATION IN THE EUROPEAN UNION 2014 GDP (in EUR billion) Sixty-eight percent of all exports are exported to European countries, of which 58 percent go to EU member states. In 2014, the number two region for German exports was Asia; receiving approximately 17 percent of all goods from Germany, followed by the Americas at 12 percent. MANUFACTURING LOCATION GERMANY German companies represent ten percent of European manufacturing companies and generate 28 percent of total EU turnover in the sector. In fact, the manufacturing sector represents more than one fifth of Germany s value added one of the highest shares in Europe. Increasingly more foreign companies are placing their faith in Germany as a vital production site location, and are benefiting from the country s excellent business framework and superior productivity rates. Share of Total GDP (EU-28) Population (in million) Share of Total Population (EU-28) Germany 2,904 21% 81 16% UK 2,223 16% 64 13% France 2,132 15% 66 13% Italy 1,616 12% 61 12% Spain 1,058 8% 47 9% Netherlands 663 5% 17 3% Poland 413 3% 38 8% Czech Rep % 11 2% EU-28 13, Eurozone 10,067 72% % USA 13, China 7,789 1,364 Japan 3, Source: Germany Trade & Invest, Eurostat, World Bank 2015 SMEs: GERMANY S ECONOMIC BACKBONE Exports are driven by Germany s backbone of highly innovative small and medium-sized enterprises (SMEs). These constitute 99.6 percent of all companies, employing almost 80 percent of all employees in Germany. Many of these SMEs are world market leaders in their respective niche segments. Together with internationally leading large companies including Bayer, BASF, Daimler, Volkswagen, and Siemens to name but a few they make up Germany s manufacturing industrial base.

6 ECONOMIC OVERVIEW GERMANY: MARKET CLOSER TO MARKET WITH FIRST CLASS INFRASTRUCTURE EUROPE S GLOBAL LOGISTICS HUB With state-of-the-art transportation networks (road, rail, sea, and inland waterways) as well as a dense network of national and international airports, Germany provides easy access to domes tic and international markets. As a truly global logistics hub, more goods pass through Germany than any other country in Europe. Its approximately one quarter share of the European logistics market (EU-28, Norway and Switzerland) reflects Germany s role as the major player in the continent s economy. WORLD CLASS TRANSPORT INFRASTRUCTURE Germany s infrastructure excellence is confirmed by a number of recent studies including the Swiss IMD s World Competitiveness Yearbook and various investor surveys conducted by institutions including the World Economic Forum (WEF) and Ernst & Young. The 2014 Logistics Performance Index of the World Bank ranked Germany first worldwide for its logistic proficiency; singling out Germany s quality of trade and transport infrastructure. Accumulated in this score for Germany are high marks for the quality of roads and air transport, excellent railroads and port infrastructure, as well as its information infrastructure. Germany is our strategic focal point, a country there is no way around in our industry. Germany is the largest market in Europe, which creates the greatest advantages for our company. Investing here was an absolute must. Sun Shubao, General Manager, Haier Group Europe and Germany WORLD CLASS NETWORK INFRASTRUCTURE Among the highlights of the country s network infrastructure are Europe s second largest port measured in container port traffic (Hamburg), Europe s largest port container terminal (Bremerhaven) and over 250 inland ports. Germany has a dense network of airports, of which 21 are international airports. Of these, Frankfurt is the world s seventh and ninth largest airport in terms of cargo and passenger volume respectively. The country s highway system has one of the highest highway kilometer density levels in Europe, its 37,860 km of railway track being almost enough to circle the globe. Germany s high-speed railway network, with speeds of up to 300 km/h, is the fourth largest in the world. LOGISTICS GIANTS Not only is Germany s logistics infrastructure among the best, its companies are also global logistics leaders. In fact, the world s leading logistics services provider is a German company Deutsche Post DHL. Deutsche Bahn operates Europe s largest rail network and Lufthansa Cargo is one of the world s leading global air freight companies. Annual revenues of EUR 230 billion in 2013 make Germany Europe s logistics leader. No other EU country comes close to Germany s market size. BRINGING EAST AND WEST TOGETHER In the north, Germany s seaports are an important conduit for trade with the UK, Scandinavia, and the Baltic states. In the west, an extensive network of roads, rail links and inland waterways feeds into France and the Benelux countries. To the south, Germany has strong commercial ties with Switzerland and Austria and direct road, rail and water links with the Balkan states. Turning eastwards, Germany s borders with Poland and the Czech Republic also bring the Slovak Republic and Hungary within easy reach and make the more distant markets in Turkey and Russia readily accessible. QUALITY OF INFRASTRUCTURE IN EUROPE 2014 Rank Country 1 Germany 2 Netherlands 3 Norway 4 UK 5 Belgium 6 Sweden 7 Switzerland 8 France 9 Luxembourg Source: World Economic Forum Ireland Source: World Bank Logistics Performance Index 2014

7 ECONOMIC OVERVIEW GERMANY: PRODUCTIVITY INCREASING COMPETITIVENESS HIGH PRODUCTIVITY Measured in unit labor costs, Germany experienced a major increase in productivity the past decade. In marked contrast to other European countries which have experienced an overall increase in unit labor costs, Germany s unit labor costs decreased by a yearly average of 0.3 percent for the period 2004 to This made the economy more competitive particularly manufacturing. STABLE LABOR COSTS At the same time, the labor cost gap between Germany and its eastern European neighbors has been significantly reduced. In fact, Germany has gained the labor-cost edge in recent years. Since 2004, wages have risen in most European countries (EU-28), with the growth rate averaging 2.5 percent. While some countries particularly those in eastern Europe experienced a rise of more than five percent, Germany recorded the lowest labor cost growth within the EU at just 1.8 percent. This has been another decisive argument in favor of Germany as a premium business location. EXCELLENT PRODUCTION STANDARDS Germany s high productivity is also closely linked to its excellent production process standards. This has been confirmed by a study of international executives conducted by the World Economic Forum (WEF). According to the study findings, Germany is seen as an EU country where the best and most efficient process technology is applied. Europe is a growing market for our light-curing adhesives. Due to the highly qualified workers and efficient cost structure, Germany was the clear choice for the expansion of our production and R&D activities. A. Gregory Bachmann, President, DYMAX Corporation ASSESSMENT OF SOPHISTICATION OF PRODUCTION PROCESS Japan Germany Netherlands USA UK France Czech Rep. 4.9 Spain 4.6 Slovak Rep. 4.2 Poland 4.1 China 4.1 Hungary 3.9 1=labor-intensive methods or previous generations of process technology 7=the world s best and most efficient process technology Source: World Economic Forum LABOR COST GROWTH IN BUSINESS ECONOMY (ANNUAL AVERAGE GROWTH IN PERCENT ) Germany France Netherlands Spain UK Czech Rep. Slovak Rep. Hungary Poland % 2.3% 2.3% 2.6% 2.6% 4.3% 4.8% 5.2% 5.3% % 5% 10% Source: Eurostat 2015

8 ECONOMIC OVERVIEW GERMANY: PRODUCTIVITY HIGHLY SKILLED WORKFORCE Germany s excellent workforce is decisive to the country s high productivity rates. It comprises over 42 million people making it the largest pool of ready labor in the EU. Germany s world-class education system ensures that the highest standards are always met. More than 80 percent of the German workforce has received formal vocational training or is in possession of an academic degree. DUAL EDUCATION SYSTEM In order to secure the economy s demand for highly qualified personnel, Germany developed a dual system in vocational training - combining the benefits of classroombased and on-the-job training over a period of two to three years. There are currently more than 320 occupations recognized by the system. In close cooperation with the German government, the German Chambers of Industry and Commerce (IHKs) and the German Confederation of Skilled Crafts (ZDH) ensure that exacting standards are rigidly adhered to, guaranteeing the quality of training provided across Germany. One in five German companies take part in the dual vocational training system, thereby turning apprentices into specialists who fit each company s individual needs. Most apprentices receive an employment contract after training. In production-based industries more than 70 percent are taken on as employees, underlining the importance of the training system for companies. More than 1.3 million young people are currently in vocational training in Germany. Germany's dual education system enjoys an unparalleled international reputation, being responsible for the lowest youth unemployment rate in Europe. DUAL EDUCATION SYSTEM Training contract between company and apprentice WORKFORCE IN GERMANY BY LEVEL OF PROFESSIONAL EDUCATION 2013 (PERCENT OF TOTAL WORKFORCE) Unskilled 18% Skilled Craftsmen (dual education system apprentices) 53% Source: Federal Statistical Office, Federal Institute for Vocational Education and Training 2014 ENGINEERING EXCELLENCE According to the German Federal Statistical Office, Germany has a particularly high academic uptake rate. In the academic year 2014/2015, some 827,500 students at more than 425 institutions of higher education embarked on a course of academic study. Germany s share of university students in the sciences, mathematics, computer sciences, and engineering is the second highest in the EU, with 33 percent of all students. APPRENTICESHIP State-recognized training occupation 1-2 days training 3-4 days training PUBLIC TRAINING SCHOOL - funded by federal state - 2/3 vocational subjects COMPANY - pays remuneration for apprentice - training by company employee as certified trainer of apprentice Source: Germany Trade & Invest 2015 (based on: DIHK, Federal Ministry of Education and Research, Federal Statistical Office 2013) University Graduates 19% Vocational College Graduates & Technicians (master craftsmen) 10% German universities have introduced masters and bachelor degrees for improved international acceptance and comparison. In addition, the country can be proud of one of the highest rates of graduates with a doctoral degree. With 328 PhD graduates per million inhabitants, it ranks fourth in a comparison of EU countries.

9 ECONOMIC OVERVIEW GERMANY: INNOVATION HIGH INNOVATION RATE RESEARCH-INTENSIVE INDUSTRIES SHARE OF GROSS VALUE ADDED 2012 INNOVATION LEADER GERMANY Significant sums are invested in the development of new technologies and innovations. Total R&D expenditure of almost EUR 80 billion in 2013 makes Germany Europe's biggest research spender. Since 2009, R&D expenditures have steadily increased at a compound annual growth rate of 4.4 percent. R&D is considered to be among the most important areas for the development of the German economy. Industry in particular has significantly increased its R&D expenditures in recent years. More and more companies are establishing international research facilities in Germany. Between 2010 and 2013, R&D FDI stocks in Germany grew by 85 percent to EUR 740 million % 8.2% 2.4% 7.5% 4.5% 3.1% 5.0% 1.9% Germany Japan USA UK Research-intensive industries (total) High-tech industries Cutting-edge technologies 3.1% 3.7% 1.7% 2.0% 2.4% 1.3% 1.1% France DIVERSE INNOVATION LANDSCAPE Industrial research reflects Germany s key source of innovation. Domestic companies invested almost EUR 54 billion in developing new technologies for competitive products in Five of the EU s top ten R&D companies are German enterprises, with Volkswagen leading the ranking. Germany s innovation landscape represents various research players, with industry a major player in contract research. In 2013, companies invested almost EUR 15 billion in third-party (i.e. contract) research. Today, successful research in Germany is based on efficient cooperation between companies, universities, and research organizations. A national cluster network combines cooperative research along the value chain with traditionally strong and world-leading industries. Note: High-tech industries are characterized by high internal R&D expenditures of between 2.5%-7% of the average OECD turnover; Cutting-edge technologies show an internal R&D intensity of more than 7% of the average OECD turnover; Source: German Institute of Economic Research (DIW) 2015 LOCATION ADVANTAGE: INNOVATION VALUE ADDED Germany s innovation profile is dominated by manufacturing industry spending; with EUR 45.7 billion in outgoings equivalent to around 85 percent of the private economy s internal R&D expenditure. Many of these high-tech industries have a significant impact on domestic economic performance. The most recent data issued by the German Institute of Economic Research (DIW) finds that no other industrialized country produces a larger share of gross value added in high-tech industries. A broad base of foreign investors in R&D underlines Germany s strong position. According to a DIW study, more than 90,000 employees work in R&D in foreign-owned German subsidiaries. With an annual R&D budget of EUR 13.2 billion, these companies account for more than 26 percent of total industry innovation expenditure. Most R&D facilities are still operated by European and US companies. HIGH-TECH PRODUCTS MADE IN GERMANY German companies are global leaders in the development of new technologies. The Made in Germany brand has been a seal of quality for over a century. In 2013, Germany exported high-tech goods to the value of EUR 145 billion making it the top high-tech goods exporter in Europe and second worldwide.

10 ECONOMIC OVERVIEW GERMANY: INNOVATION PUBLIC R&D SUPPORT: GERMANY S HIGH-TECH STRATEGY The High-Tech Strategy promotes the advancement of new technologies by creating synergy effects between industry and institutional research. Most programs within the framework of the High- Tech Strategy promote partnerships between different project partners particularly enterprises and research institutes in order to bring together institutional research and entrepreneurial expertise. R&D projects can accordingly count on generous financial support in the form of R&D grants. Interestreduced loans and special partnership programs complete Germany s public R&D project support. WORLD CLASS KNOW-HOW While Germany is home to the largest population of researchers in Europe (21 percent of all EU scientists live and work in Germany), German scientists work on projects all over the world. Research results obtained by the Max Planck Society, for example, are achieved through fruitful partnerships with some 5,400 partners in research institutions in more than 120 countries. Cooperation projects between companies and academic research institutes provide an efficient way to close knowledge gaps. Scientists can be easily integrated into the company team of developers and researchers and, increasingly, institutes provide for the necessary laboratory facilities. EUROPEAN PATENT LEADER With almost 13,100 patents granted at the European Patent Office in 2014, Germany s share of patents is almost twice that of France and the UK combined. This shows the commercial viability of innovations made in Germany. Germany is not only an attractive market, but it is also extremely strong on research and development. This is why I brought my R&D activities and marketing operations over to Germany from Switzerland. Zeng Quiping, CEO and founder of IDENCOM NATIONAL SHARE OF RESEARCHERS IN EU Source: Eurostat 2015 Other EU-Countries 20% Portugal 3% Netherlands 4% Sweden 4% Poland 4% Italy 7% Spain 7% The country is also one of the leading European nations in triadic patents (patents registered at the three major global patent offices: the European Patent Office, the United States Patent and Trademark Office, and the Japan Patent Office). PROFITING FROM INNOVATION CLUSTERS Innovation does not exist in splendid isolation for German companies. Non-unversity research institutes, universities and companies all work together in numerous clusters throughout the country to improve or invent new products, services, and processes. To this end, the German Federal Government has been providing targeted financial support for 20 years. France 15% Germany 21% UK 15% Universities and non-university research institutions also serve as innovative partners to industry. According to the German Federal Statistical Office, universities invested approximately EUR 14.3 billion in R&D in Germany s four globally renowned non-university research foundations - Max Planck, Fraunhofer, Helmholtz, and Leibniz - also boasted an overall research budget of around EUR 9 billion for the same year. With more than 71,200 full-time equivalent research personnel working at more than 250 institutes, these organizations are involved in a broad spectrum of research projects; covering everything from fundamental to applied science.

11 GERMANY: AT THE CROSSROADS OF EUROPE Situated at the market crossroads of Europe, Germany s optimal geographic location is beyond question: Over half of the EU population lives within 500 kilometers of Germany s borders; more goods pass through Germany than any other European country; and almost all of Europe is reachable within three hours by air or 24 hours by road. Finland lane > Sweden 3 h by p Russia Norway Helsinki Stockholm Moscow Tallinn Oslo Estonia 1.5 h > Riga Latvia Lithuania Denmark Minsk Copenhagen RU Vilnius Belarus Dublin Ireland Warsaw Berlin London Amsterdam Belgium 15 h > GERMANY Ukraine Czech Republic Paris Vienna France Austria Bern h < Portugal by Moldova Chisinau Bratislava Budapest Romania Slovenia Zagreb Ljubljana Croatia Bucharest Belgrade BosniaHerzegovina Serbia ck h Slovak Republic Hungary Switzerland < h by train > Prague Brussels Luxembourg 12 Kiev Poland Netherlands Bulgaria Sarajevo u tr Montenegro Kosovo Italy Podgorica Pristina Tirana Rome Sofia Skopje Ankara Macedonia Albania Madrid Turkey Lisbon Greece Spain Athens Malta Valletta Source: Germany Trade & Invest 2011 Cartography: António Duarte UK

12 INNOVATION MADE IN GERMANY Individual federal state research budgets often correspond with those of other European countries. Bavaria s R&D spending, for example, is comparable with the combined investments of Spain and Portugal, while North Rhine-Westphalia invests almost as much as the Netherlands. Germany invests significantly in fast-developing technologies. With a 2013 R&D investment level of almost EUR 80 billion, Germany invested the combined innovation expenditures of the UK (EUR 33 billion) and France (EUR 47 billion) put together. Technology transfer between universities, non-university research organizations, and companies takes place in highly specialized technology clusters located across the country. R&D EXPENDITURE BY FEDERAL STATE EQUIVALENT COUNTRY 2013 DENMARK BALTIC SEA NORTH SEA Schleswig-Holstein Hungary Mecklenburg-Vorpommern Slovak Republic Hamburg Bulgaria+Romania+Hungary Bremen Baltic States POLAND Niedersachsen Norway Berlin Poland Brandenburg Slovenia THE NETHERLANDS Saxony-Anhalt Baltic States North Rhine-Westphalia Netherlands Saxony Czech Republic Hessen Finland BELGIUM Thuringia Hungary Rheinland-Pfalz Portugal CZECH REPUBLIC LUXEMBOURG FRANCE Baden-Württemberg Italy Bavaria Spain + Portugal EUR 80 bn EUR 47 bn UK France Source: Germany Trade & Invest research based on Federal Statistical Office, Eurostat 2015 Germany EUR 33 bn Cartography: roccomontoya istockphoto.com Saarland Luxembourg

13 ECONOMIC OVERVIEW GERMANY: SERVICES GERMANY TRADE & INVEST HELPS YOU Germany Trade & Invest s teams of industry experts will assist you in setting up your operations in Germany. We support your project management activities from the earliest stages of your expansion strategy. We provide you with all of the industry information you need covering everything from key markets and related supply and application sectors to the R&D landscape. Foreign companies profit from our rich experience in identifying the business locations which best meet their specific investment criteria. We help turn your requirements into concrete investment site proposals; providing consulting services to ensure you make the right location decision. We coordinate site visits, meetings with potential partners, universities, and other institutes active in the industry. Our team of consultants is at hand to provide you with the relevant background information on Germany s tax and legal system, industry regulations, and the domestic labor market. Germany Trade & Invest s experts help you create the appropriate financial package for your investment and put you in contact with suitable financial partners. Incentives specialists provide you with detailed information about available incentives, support you with the application process, and arrange contacts with local economic development corporations. All of our investor-related services are treated with the utmost confidentiality and provided free of charge. COMPLETE YOUR PROJECT MANAGEMENT NEEDS FROM OUR RANGE OF INVESTMENT AND ONE-STOP PROJECT CONSULTANCY SERVICES. STRATEGY EVALUATION DECISION & INVESTMENT PROJECT MANAGEMENT ASSISTANCE Business opportunity analysis and market research Market entry strategy support Project partner identification and contact Joint project management with regional development agency Coordination and support of negotiations with local authorities LOCATION CONSULTING /SITE EVALUATION Identification of project-specific location factors Cost factor analysis Site preselection Site visit organization Final site decision support SUPPORT SERVICES Identification of relevant tax and legal issues Project-related financing and incentives consultancy Organization of meetings with legal advisors and financial partners Administrative affairs support Accompanying incentives application and establishment formalities

14 CONTACT IMPRINT PUBLISHER Germany Trade and Invest Gesellschaft für Außenwirtschaft und Standortmarketing mbh Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) EXECUTIVE BOARD Dr. Benno Bunse, Chairman/CEO Dr. Jürgen Friedrich, CEO AUTHORS Thomas Bozoyan, Market Intelligence Germany Germany Trade & Invest, Dr. Hans-Peter Hüssen, Market Intelligence Germany Germany Trade & Invest, Marc Lehnfeld, Market Intelligence Germany Germany Trade & Invest, EDITOR William MacDougall, Germany Trade & Invest LAYOUT Germany Trade & Invest PRINT Asmuth Druck & Crossmedia GmbH & Co. KG, Köln NOTES Germany Trade & Invest, August 2015 All market data provided is based on the most current market information available at the time of publication. Germany Trade & Invest accepts no liability for the actuality, accuracy, or completeness of the information provided. ORDER NUMBER 14783

15 Germany Trade & Invest Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) ABOUT US Photo: istockphoto.com Claudia Dewald Germany Trade & Invest is the economic development agency of the Federal Republic of Germany. The company helps create and secure extra employment opportunities, strengthening Germany as a business location. With more than 50 offices in Germany and abroad and its network of partners throughout the world, Germany Trade & Invest supports German companies setting up in foreign markets, promotes Germany as a business location and assists foreign companies setting up in Germany. All investment services and related publications are free of charge. Germany Trade & Invest is supported by the Federal Ministry for Economic Affairs and Energy on the basis of a decision by the German Bundestag.