Germany Again Tops in Europe in FDI Confidence Index

March 2021

The 2021 Foreign Direct Investment Confidence Index published by management consultants AT Kearney sees Germany retain its third-placed ranking after the United States and Canada.

Overall, the managers surveyed were slightly more pessimistic than a year ago –no doubt because of the coronavirus pandemic. But Germany tied with Japan at the top of the rankings in response to the question: “How has your three-year economic outlook for [country] changed compared with a year ago?”

46 percent said they were more optimistic about Germany, compared with only 11 percent who were more pessimistic – yielding a net score of 35.

“Business leaders were most optimistic about Japan, Germany, Canada, and Switzerland, with the UAE and Australia tied for fifth as the countries with the most optimistic economic outlook in net terms,” the authors of the index wrote. “The relative strength of these countries is likely attributable to the fact that all these markets have strengths in technology and are wealthy markets with high consumer purchasing power.”

Among the big gainers among the criteria managers said they use to decide where to make an FDI were “R&D capabilities” and “efficiency of legal and regulatory processes” – two traditional German strengths.

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