FDI In Germany Drop to a Decade Low

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/ Go to the mediabankGerman Chancellor Olaf Scholz attends a news conference / Go to the mediabankInternationalIndiaAfricaMOSCOW (Sputnik) – Germany’s attractiveness to foreign investors has dropped by a further 1% to a decade low, with 832 projects created in the country in 2022, a survey by the EY consultancy has revealed. EY Germany CEO Henrik Ahlers told German broadcaster that “in terms of the costs Germany has clearly lost some of its attractiveness recently, especially for industrial enterprises.” The EY Europe Attractiveness Survey cited Germany’s tight labor pool and high-carbon energy mix as the main deterrents for foreign investors. Energy Crisis in EuropeGerman Economy Contracts Thanks to Energy Crisis and Interest Rate Hikes30 January, 14:12 GMTThe study shows France firmly in the top spot for the fourth year running, on the back of business-friendly reforms. The number of foreign direct investment projects in the country rose by 3% last year to 1,259. The United Kingdom came second with 929 new projects, down by 6% compared to 2021. EY said investors were discouraged by trade restrictions and labor shortages, which are in part caused by Brexit. WorldUkrainian Conflict to Cost German Economy $190Bln, 4.5% of GDP in 2023, Study Says24 January, 04:34 GMTTogether, France, the UK and Germany accounted for 50% of the total 5,962 foreign projects created in Europe last year. EY said it remained concerned about Europe’s weak manufacturing performance as rising energy costs, supply chain disruptions and the general slowdown continue weighing down on its economy.