Germany as a business location has lost global appeal. This is the result of a survey of international companies conducted by the German Chambers of Commerce Abroad (AHKs) in collaboration with the Association of German Chambers of Commerce and Industry (DIHK).
According to the survey, Germany’s international image as a top business location has significantly worsened over the past five years. In the latest survey, in which over 1,250 companies from various regions around the world participated, nearly half of the businesses (48 percent) expressed the opinion that Germany’s image had “deteriorated” (35 percent) or even “significantly deteriorated” (13 percent). Companies from the Eurozone, the Asia-Pacific region, and particularly China are especially critical of this development. On the other hand, more positive tones are coming from Africa, the Middle East, and South and Central America.
Business friendliness and innovation power under pressure
“An external perspective reveals our national blind spots,” says Volker Treier, Chief Foreign Trade Officer at the DIHK. “It is high time for German policymakers to refocus on the attractiveness of our business location. To do this, they must improve the key location factors.” According to the survey, more than a third of companies rate Germany’s business friendliness as mediocre, and more than a quarter even consider it unfriendly to business. Treier warns: “This is a clear warning signal.”
There are also concerns about innovation power, a key success factor for the future of the business location. While 46 percent of the surveyed companies praise Germany’s innovation capabilities, one-fifth of businesses doubt whether the country is innovative enough.
Willingness to invest is declining
Particularly worrying: fewer and fewer companies recommend investing in Germany. Only 43 percent are in favor, 32 percent remain neutral, and one in four (25 percent) even advises against investing in Germany — a “wake-up call,” according to the DIHK’s Chief Foreign Trade Officer.
Need for action on bureaucracy, politics and welcoming culture
The survey clearly highlights where companies see the need for action: they need less bureaucracy, more reliable political decisions, and a stronger welcoming culture for businesses and skilled workers. “The German Chambers of Commerce Abroad and the DIHK are ready to assist,” emphasizes Treier. “But the real work in terms of ‘improving location conditions’ must be done here in Germany.”
Source: DIHK
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