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The Jurisdiction in detail

Germany, Europe’s leading economic power, was unable to escape the economic crisis, its growth thus slowing. The country’s economic problems are partly related to the recent accession of Eastern Europe into the European Union, because as a developed nation, Germany must actively participate in the economic aid given to these countries. For 2013, its growth was estimated at 0.9%.

As in most Western countries, German agriculture allows for high production but constitutes only 1 per cent of the GDP. Livestock, milk, beetroot and cereals are the main foodstuffs produced by the agricultural sector, as the population is becoming keener on organic products. For its part, German industry’s share in GDP has declined in the last 40 years, but it remains no less powerful and is particularly competitive. Indeed, the country’s industrial production is recognised in particular for its quality, which makes Germany an exporting power. The automotive sector is particularly famous and dynamic. Finally, the services sector accounts for 70% of the GDP and is mainly comprised of SMEs which employ the majority of the active population.

Germany, with its open economy, is the largest exporter in Europe and is among the most active in the world. Unlike most of its neighbours, the country has a surplus trade balance, which has hardly been affected by the crisis, thanks to high value-added property. Its major trading partners are of course the European Union, followed by the United States and China.

Advantages of investing :

  • good location, in the centre of Europe
  • largest domestic EU market (81 million inhabitants)
  • very good infrastructure and technology
  • major exporter
  • skilled workforce
  • tax advantages

 

Weak points :

  • the former Communist part of the country is having difficulty catching up
  • significantly aging population (one of the lowest birth rates in the world)
  • high level of unemployment

 

Tax incentives (financial aid) have been implemented by the Government to promote FDIs, partly with the help of the European Union.

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