View from the Top: Germany Trade & Invest
»We are positive that Germany will maintain its position as a safe haven.«
GTAI’s managing director Achim Hartig discusses this year’s FDI report, which shows an increase of interest from foreign investors in Germany during the last two years.
Which industries will find Germany increasingly attractive in the coming years?
I think the healthcare and pharmaceutical industries will remain a major focus. As the entire world is striving to fight Covid-19, Germany has a world-class healthcare system and research and development facilities. Digitalization in all of its forms is also extremely important, and digital delivery of information, goods and services is moving faster than ever.
Manufacturing industries have always been the backbone of Germany’s economy. Manufacturing’s contribution to GDP remains around 30 percent, which is unparalleled in Europe. I expect the size, strength and structure of German manufacturing, which is mostly comprised of small and medium-sized enterprises, to become even more attractive due to its versatility and resilience.
Furthermore, renewable energy and energy efficiency are cornerstones of the German government’s plan to reboot the economy. Germany’s position in the areas of renewable energy and energy efficiency was already strong, and it will become even more attractive in years to come.
How do you think Brexit will affect FDI in Germany?
The UK has been a strong trade partner for Germany, but in the past few years, exports to the UK have dropped by 6 percent as exports to other European countries grew by 7 percent. Companies are already restructuring their value chains to avoid new tariffs and other barriers after Brexit. Germany has seen increasing interest from foreign investors in the past two years.
What’s Germany’s biggest selling point for potential investors?
Trust. After the UK, Germany is the most attractive European country for foreign direct investment. The pandemic-related measures in Germany were effective in an early stage to stabilize our society and economy. We are positive that Germany will maintain its position as a safe haven for investors in turbulent times.